Interval Solutions for TU-Games

Tinbergen Institute Discussion Paper 17094/II

24 Pages Posted: 9 Oct 2017

See all articles by Rene van den Brink

Rene van den Brink

Vrije Universiteit Amsterdam, School of Business and Economics

Osman Palanci

Suleyman Demirel University

Sirma Zeynep Alparslan-Gok

Suleyman Demirel University

Date Written: October 6, 2017

Abstract

Standard solutions for TU-games assign to every TU-game a payoff vector. However, if there is uncertainty about the payoff allocation then we cannot just assign a specific payoff to every player. Therefore, in this paper we introduce interval solutions for TU-games which assign to every TU-game a vector of payoff intervals. Since the solution we propose uses marginal vectors of the interval game, we need to apply a difference operator on intervals. Applying the subtraction operator of Moore (1979), we define an interval solution for TU-games, and we provide an axiomatization.

Keywords: Cooperative TU-game, interval game, Moore subtraction, Moore-Shapley interval solution

JEL Classification: C71

Suggested Citation

van den Brink, Rene and Palanci, Osman and Alparslan-Gok, Sirma Zeynep, Interval Solutions for TU-Games (October 6, 2017). Tinbergen Institute Discussion Paper 17094/II, Available at SSRN: https://ssrn.com/abstract=3048803 or http://dx.doi.org/10.2139/ssrn.3048803

Rene Van den Brink (Contact Author)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Osman Palanci

Suleyman Demirel University ( email )

Almaty
Kazakhstan

Sirma Zeynep Alparslan-Gok

Suleyman Demirel University ( email )

Suleyman Demirel University, Faculty of Arts and
Sciences, Mathematics Department
Isparta, 32260
Turkey
902462114282 (Phone)

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