The Cost of Getting Local Monotonicity
26 Pages Posted: 5 Nov 2014
Date Written: November 4, 2014
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: Suggested Citation