Probabilistic Network Values
28 Pages Posted: 17 Sep 2020 Last revised: 19 Sep 2020
Date Written: September 14, 2020
We consider a class of cooperative network games with transferable utilities in which players interact through a probabilistic network rather than a regular, deterministic network. In this class of wealth-generating situations we consider probabilistic extensions of the Myerson value and the position value. For the subclass of probabilistic network games in multilinear form, we establish characterizations of these values using an appropriate formulation of component balancedness. We show axiomatizations based on extensions of the well-accepted properties of equal bargaining power, balanced contributions, and balanced link contributions.
Keywords: Probabilisitic network game, the probabilistic Myerson value, the probabilistic Position value, axiomatic characterization
JEL Classification: C71, D85
Suggested Citation: Suggested Citation