Abstract
Studies on games in coalition form deal with the power of cooperation among its participants. In this sense it is often referred to as cooperative game theory. In a simple mathematical formulation, we have a set N of agents, and a value function υ : 2N → R where, for each subset S ⊆ N, , υ (S) represents the value obtained by the coalition of agents of the subset S without assistance of other agents, with υ(ø) = 0. Individual income can be represented by a vector x : N → R. We consider games with side payments. The main issue here is how to fairly distribute the income collectively earned by a group of cooperating participants in the game. For simplicity, we write x(S) = Σ i∈S x i . A vector x is called an imputation if x(N) = υ(N), and ∀i∈ N : x i ≥ υ({i}) (individual rationality).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
R.J. Aumann and M. Maschler, The Bargaining Set of Cooperative Games, in M. Dresher, L.S. Shapley and A.W. Tucker (eds.) Advances in Game Theory, (Princeton University Press, Princeton, 1964) pp. 443–447.
J. F. Banzhaf, Weighted Voting Doesn’t Work: A Mathematical Analysis, Rutgers Law Reviews Vol. 19 (1965) pp. 317–343.
C.G. Bird, Cost-allocation for a spanning tree, Networks 6 (1976) pp. 335–350.
A. Claus, and D. Granot, Game Theory Application to Cost Allocation for a Spanning Tree, Working Paper No 402, (Faculty of Commerce and Business Administration, University of British Columbia, June 1976 ).
A. Claus, and D.J. Kleitman, Cost Allocation for a Spanning Tree, Networks Vol. 3 (1973) pp. 289–304.
W. H. Cunningham, On Submodular Function Minimization, Combinatorica Vol. 5 (1985) pp. 185–192.
I. J. Curiel, Cooperative Game Theory and Applications, Ph.D. dissertation, (University of Nijmegen, the Netherlands, 1988 ).
M. Davis, and M. Maschler, The Kernel of a Cooperative Game, Naval Research Logistics Quarterly Vol. 12 (1965) pp. 223–295.
X. Deng, Mathematical Programming: Complexity and Algorithms, PhD Thesis, Department of Operations Research, Stanford University, California (1989).
X. Deng, T. Ibaraki and H. Nagamochi, Combinatorial Optimization Games, Proceedings 8th Annual ACM-SIAM Symposium on Discrete Algorithms, ( New Orleans, LA, 1997 ) pp. 720–729.
X. Deng and C. Papadimitriou, On the Complexity of Cooperative Game Solution Concepts, Mathematics of Operations Research Vol. 19, No. 2 (1994) pp. 257–266.
M. Dror, Cost Allocation: The Traveling Salesman, Binpacking, and the Knapsack, Technical Report, INRS Telecommuincations, Quebac, Canada (1987).
P. Dubey, and L.S. Shapley, Mathematical Properties of the Banzhaf Power Index, Mathematics of Operations Research Vol. 4 (1979) pp. 99–131.
P. Dubey, and L.S. Shapley, Totally Balanced Games Arising from Controlled Programming Problems, Mathematical Programming Vol. 29 (1984) pp. 245–267.
J. Edmonds, Path, Tree, and Flowers, Canadian Journal of Mathematics Vol. 17 (1965) pp. 449–469.
J. Edmonds, Optimum Branchings, National Bureau of Standards Journal of Research Vol. 69B (1967) pp. 125–130.
U. Faigle, S. Fekete, W. Hochstättler and W. Kern, On Approximately Fair Cost Allocation in Euclidean TSP Games, (Technical Report, Department of Applied Mathematics, University of Twente, The Netherlands, 1994 ).
U. Faigle, S. Fekete, W. Hochstättler and W. Kern, On the Complexity of Testing Membership in the Core of Min-cost Spanning Tree Games, International Journal of Game Theory Vol 26 (1997) pp. 361–366.
U. Faigle, S. Fekete, W. Hochstättler and W. Kern, The Nukleon of Cooperative Games and an Algorithm for Matching Games, (Technical Report #94. 178, Universität zu Köln, Germany, 1994 ).
U. Faigle and W. Kern, Partition games and the core of hierarchically convex cost games, (Universiteit Twente, faculteit der toegepaste wiskunde, Memorandum, No. 1269, June 1995 ).
D. Gillies, Solutions to General Nonzero Sum Games, Annals of Mathematical Studies Vol. 40 (1959) pp. 47–85
M. R. Garey and D. S. Johnson, Computers and Intractability: A Guide to the Theory of NP-completeness, (W.H. Freeman & Company, Publishers, San Francisco, 1979 ).
D. Granot, A Note on the Roommate Problem and a Related Revenue Allocation Problem, Management Science Vol. 30 (1984) pp. 633–643.
D. Granot, A Generalized Linear Production Model: A Unified Model, Mathematical Programming Vol. 34 (1986) pp. 212–222.
D. Granot, and G. Huberman, On the Core and Nucleolus of Minimum Cost Spanning Tree Games, Mathematical Programming Vol. 29 (1984) pp. 323–347.
M. Grötschel, L. Lovâsz and A. Schrijver, Geometric Algorithms and Combinatorial Optimization, ( Springer-Verlag, Hong Kong, 1988 ).
A. Hallefjord, R. Helming, and K. Jornsten, Computing the Nucleolus when the Characteristic Function is Given Implicitly: A Constraint Generation Approach, International Journal of Game Theory, Vol. 24 (1995) pp. 357–372.
Herber Hamers, Daniel Granot, and Stef Tijs, On Some Balanced, Totally Balanced and Submodular Delivery Games, Program and Abstract of 16th International Symposium on Mathematical Programming (1997) p. 118.
E. Kalai, Games, Computers, and O.R., Proceedings of the 6th ACM/SIAM Symposium on Discrete Algorithms, (1995) pp. 468–473.
E. Kalai and E. Zemel, Totally Balanced Games and Games of Flow, Mathematics of Operations Research Vol. 7 (1982) pp. 476–478.
E. Kalai and E. Zemel, Generalized Network Problems Yielding Totally Balanced Games, Operations Research Vol. 30 (1982) pp. 998–1008.
Jeroen Kuipers, Minimum Cost Forest Games, International Journal of Game Theory Vol. 26 (1997) pp. 367–377.
Jeroen Kuipers, A Polynomial Time Algorithm for Computing the Nucleolus of Convex Games, Program and Abstracts of the 16th International Symposium on Mathematical Programming (1997) p. 156.
S.C. Littlechild, A Simple Expression for the Nucleolus in a Special Case, International Journal of Game Theory Vol. 3 (1974) pp. 21–29.
S.C. Littlechild and G. Owen, A Simple Expression for the Shapley Value in a Special Case, Management Science Vol. 20 (1973) pp. 370–372.
W. F. Lucas, The proof that a game may not have a solution, Transactions of the American Mathematical Society vol. 137 pp. 219–229.
A. Mas-Colell, An Equivalence Theorem for a Bargaining Set, Journal of Mathematical Economics Vol. 18 (1989) pp. 129–139.
N. Megiddo, Computational Complexity and the game theory approach to cost allocation for a tree, Mathematics of Operations Research Vol. 3 (1978) pp. 189–196.
N. Megiddo, Cost Allocation for Steiner Trees, Networks Vol. 8 (1978) pp. 1–6.
M. Maschler, B. Peleg, L. S. Shapley, The Kernel and Bargaining Set for Convex Games, International Journal of Game Theory Vol. 1 (1972) pp. 73–93.
J.F., Jr., Nash, Equilibrium Points in n-person Games, Proceedings of the National Academy of Science U.S.A. Vol. 36 (1950) pp. 48–49.
H. Nagamochi, D. Zeng, N. Kabutoya and T. Ibaraki, Complexity of the Minimum Base Games on Matroids, to appear in Mathematics of Operations Research.
A. Neyman, Bounded Complexity Justifies Cooperation in the Finitely Repeated Prisoner’s Dilemma,“ Economics Letters. Vol 19 (1985) pp. 227–229.
G. Owen, On the core of Linear Production Games, Mathematical Programming. Vol 9 (1975) pp. 358–370.
C. H. Papadimitriou and M. Yannakakis, On Complexity as Bounded Rationality, Proceedings of the 26th ACM Symposium on the Theory of Computing, (1994) pp. 726–733.
J. Potters, I. Curiel, and S. Tijs, Traveling Salesman Games, Mathematical Programming Vol. 53 (1992) pp. 199–211.
F. Sanchez S., Balanced Contribution Axiom in the Solution of Cooperative Games, Games and Economic Behavior Vol. 20 (1997) pp. 161–168.
D. Schmeidler, The Nucleolus of a Characteristic Function Game, SIAM Journal of Applied Mathematics Vol. 17 (1969) pp. 1163–1170.
L. S. Shapley, On Balanced Sets and Cores, Naval Research Logistics Quarterly Vol. 14 (1967) pp. 453–460.
L. S. Shapley, A Value for n-person Games, in H. Kuhn and A.W. Tucker (eds.) Contributions to the Theory of Games Vol. II ( Princeton University Press, Princeton, 1953 ) pp. 307–317.
L. S. Shapley, Cores of Convex Games, Int. J. of Game Theory Vol. 1, pp. 11–26, 1972.
L. S. Shapley, and M. Shubik, On Market Games, J. Econ. Theory Vol. 1 (1969) pp. 9–25.
L. S. Shapley, and M. Shubik, The Assignment Game, International Journal of Game Theory Vol. 1 (1972) pp. 111–130.
M. Shubik, Game Theory Models and Methods in Political Economy, in Arrow and Intriligator (eds.) Handbook of Mathematical Economics, Vol. I, (North-Holland, New York, 1981 ) pp. 285–330.
H. Simon, Theories of Bounded Rationality, in R. Radner (eds.) Decision and Organization, (North Holland, 1972 ).
A. Tamir On the Core of Cost Allocation Games Defined on Location Problems, Preprints, Second International conference on Locational Decisions (ISOLDE 81) ( Skodsborg, Denmark, 1981 ) pp. 387–402.
A. Tamir On the Core of a Traveling Salesman Cost Allocation Game, Operations Research Letters Vol. 8 (1989) pp. 31–34.
A. Tamir On the Core of Network Synthesis Gaines, Mathematical Programming Vol. 50 (1991) pp. 123–135.
A. Tamir and J.S.B. Mitchell, A maximum b-matching problem arising from median location models with applications to the roommate problem, To appear in Mathematical Programming.
S. Tijs Bounds for the Core and the T-value, in O. Moeschlin and P. Pallaschke (eds.) Game Theory and Mathematical Economics, (North Holland Publishing Company, 1981) pp.123–132.
J. von Neumann and O. Morgenstern, Theory of Games and Economic Behavior ( Princeton University Press, Princeton, 1944 ).
W. Zang, and X. Deng, manuscript.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1998 Kluwer Academic Publishers
About this chapter
Cite this chapter
Deng, X. (1998). Combinatorial Optimization and Coalition Games. In: Du, DZ., Pardalos, P.M. (eds) Handbook of Combinatorial Optimization. Springer, Boston, MA. https://doi.org/10.1007/978-1-4613-0303-9_12
Download citation
DOI: https://doi.org/10.1007/978-1-4613-0303-9_12
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-7987-4
Online ISBN: 978-1-4613-0303-9
eBook Packages: Springer Book Archive