Two-Level Cooperation in Network Games

  • Leon Petrosyan
  • Artem SedakovEmail author
Conference paper
Part of the Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering book series (LNICST, volume 277)


The problem of allocating a value in hierarchical cooperative structures is important in the game theoretic literature, and it often arises in practice. In this paper, we consider a two-level structure of players communication and propose a procedure allocating the value in two steps: first the value is allocated at the upper level among groups of players, and then each group allocates the designated value among its members. We demonstrate how to allocate the value in two steps using the Shapley value and show the difference with the classical one-step allocation procedure. We then adopt this approach for games with pairwise interactions and provide relations between several definitions of the characteristic function and the corresponding Shapley values.


Network Hierarchy Cooperation Two-level allocation Shapley value 



The authors thank reviewers for valuable comments.


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Copyright information

© ICST Institute for Computer Sciences, Social Informatics and Telecommunications Engineering 2019

Authors and Affiliations

  1. 1.Saint Petersburg State UniversitySaint PetersburgRussia

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