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The Cost of Getting Local Monotonicity

26 Pages Posted: 5 Nov 2014  

Sascha Kurz

University of Bayreuth

Josep Freixas

Polytechnic University of Catalonia (UPC)

Date Written: November 4, 2014

Abstract

Manfred Holler introduced the Public Good index as a proposal to divide a public good among players. In its unnormalized version, i.e., the raw measure, it counts the number of times that a player belongs to a minimal winning coalition. Unlike the Banzhaf index, it does not count the remaining winning coalitions in which the player is crucial. Holler noticed that his index does not satisfy local monotonicity, a fact that can be seen either as a major drawback or as an advantage.

Keywords: Public Good Index, local monotonicity, design of power indices, solidarity, individualism, fair division

JEL Classification: D72

Suggested Citation

Kurz, Sascha and Freixas, Josep, The Cost of Getting Local Monotonicity (November 4, 2014). Available at SSRN: https://ssrn.com/abstract=2519088 or http://dx.doi.org/10.2139/ssrn.2519088

Sascha Kurz (Contact Author)

University of Bayreuth ( email )

Universit├Ątsstr. 30
Lehrstuhl f├╝r Wirtschaftsmathematik
Bayreuth, Bavaria D-95440
Germany
+49 921 55 7353 (Phone)
+49 921 55 7352 (Fax)

HOME PAGE: http://www.wm.uni-bayreuth.de/index.php?id=sascha

Josep Freixas

Polytechnic University of Catalonia (UPC) ( email )

C. Jordi Girona, 31
Barcelona, 08034
Spain

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