Values for Environments with Externalities – The Average Approach

David Wettstein (), David Pérez-Castrillo and Ines Macho-Stadler
Authors registered in the RePEc Author Service: David Perez-Castrillo

No 919, Working Papers from Barcelona School of Economics

Abstract: We propose the average approach,where the worth of a coalition is a weighted average of its worth for diâ „erent partitions of the playersset, as a unifying method to extend values for characteristic function form games. Our method allows us to extend the equal division value, the equal surplus value, the consensus value, the -egalitarian Shapley value, and the least-square family. For each of the rst three extensions, we also provide an axiomatic characterization of a particular value for partition function form games. And for each of the last two extensions, we nd a family of values that satisfy the properties.

Keywords: Externalities; sharing the surplus; average approach (search for similar items in EconPapers)
JEL-codes: C71 D62 (search for similar items in EconPapers)
Date: 2016-07
New Economics Papers: this item is included in nep-cse, nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:919

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