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Forming coalitions and the Shapley NTU value

Juan Vidal-Puga

European Journal of Operational Research, 2008, vol. 190, issue 3, 659-671

Abstract: A simple protocol for coalition formation is presented. First, an order of the players is randomly chosen. Then, a coalition grows by sequentially incorporating new members in this order. The protocol is studied in the context of non-transferable utility (NTU) games in characteristic function form. If (weighted) utility transfers are feasible when everybody cooperates, then the expected subgame perfect equilibrium payoff allocation anticipated before any implemented game is the Shapley NTU value.

Date: 2008
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