Ordinal equivalence of values, Pigou–Dalton transfers and inequality in TU-games

C. Chameni Nembua and C. Miamo Wendji
Authors registered in the RePEc Author Service: Miamo Wendji Clovis

Games and Economic Behavior, 2016, vol. 99, issue C, 117-133

Abstract: The paper examines the assessment of inequality in TU-games when individual payoffs are modeled using a notion of value. Especially, it studies inequality that affects the payoffs of Linear, Efficient and Symmetric values (LES values). We use the Pigou–Dalton transfers principle and the Lorenz criterion to compare LES values of weakly linear games (Freixas, 2010) and shed light on transfers of payoffs that may result from substituting a given LES value for another. We also characterize weak linearity in terms of Pigou–Dalton transfers. Since such transfers preserve the ordinal equivalence of values, the paper studies the ordinal equivalence of LES values in TU-games. Our study covers four classes of games which are ranked by set inclusion as follows: strongly linear games, linear games, sharply linear games and weakly linear games. We characterize the ordinal equivalence of LES values for each of these subclasses of TU-games.

Keywords: Cooperative games; Desirability relation; Linear values; Weakly linear games; Pigou–Dalton transfers; Lorenz dominance (search for similar items in EconPapers)
JEL-codes: C71 D31 D63 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:99:y:2016:i:c:p:117-133

DOI: 10.1016/j.geb.2016.07.008

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