A Value for Directed Communication Situations
Tinbergen Institute Discussion Paper No. 2008-006/1
31 Pages Posted: 23 Jan 2008
Date Written: January 2008
Abstract
In this paper we introduce an extension of the model of restricted communication in cooperative games as introduced in Myerson (1977) by allowing communication links to be directed and the worth of a coalition to depend on the order in which the players enter the coalition. Therefore, we model the communication network by a directed graph and the cooperative game by a generalized characteristic function as introduced in Nowak and Radzik (1994). We generalize the Myerson value for undirected (or standard) communication situations to the context of directed communication and provide two axiomatizations of this digraph Myerson value using component efficiency and either fairness or the balanced contributions property.
Keywords: Myerson value, Digraph communication situations
JEL Classification: C71
Suggested Citation: Suggested Citation