Outside Options in Probabilistic Coalition Situations

Julia Belau

No 236, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: In this paper, I introduce an extension of (TU) games with a coalition structure. Taking a situation where all coalitions are already established is not reasonable in order to forecast the reality; there is not only one possible coalition, there are several. I consider situations where coalitions are not established yet and take into account the likelihood of each possible coalition. This leads to a generalized, probabilistic setting for coalition structures. Probabilistic versions of known axioms are introduced as well as new probabilistic axioms. Generalizations of both the outside-option-sensitive chi-value (Casajus, Soc Choice Welf 32, 1-13, 2009) and its outside-option-insensitive pendant, the component restricted Shapley value (Aumann and Drèze, Int. J. Game Theory 3, 217-237, 1974), are defined and axiomatic characterizations are given.

Keywords: TU game; coalition structure; outside option (search for similar items in EconPapers)
JEL-codes: C71 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: OUTSIDE OPTIONS IN PROBABILISTIC COALITION SITUATIONS (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:236

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