On the Convenience to Form Coalitions or Partnerships in Simple Games

Francesc Carreras, M. Llongueras and Antonio Magaña

Annals of Operations Research, 2005, vol. 137, issue 1, 67-89

Abstract: A partnership in a cooperative game is a coalition that possesses an internal structure and, simultaneously, behaves as an individual member. Forming partnerships leads to a modification of the original game which differs from the quotient game that arises when one or more coalitions are actually formed. In this paper, the Shapley value is used to discuss the convenience to form either coalitions or partnerships. To this end, the difference between the additive Shapley value of the partnership in the partnership game and the Shapley alliance value of the coalition, and also between the corresponding value of the internal and external players, are analysed. Simple games are especially considered. Copyright Springer Science + Business Media, Inc. 2005

Keywords: cooperative game; Shapley value; partnership; alliance (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1007/s10479-005-2245-8

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