The Permission-Owen Value: Axiomatization and Application to Liability Situations

Abstract

This paper introduces a novel framework for transferable utility games that incorporates permission relationships between a priori unions of players. This framework is particularly well-suited for modeling liability situations where groups of individuals cause harm through a series of wrongful actions. We propose the permission-Owen value, a new allocation rule that merges the (conjunctive) permission value with the Owen value, and apply it to these liability situations. Finally, we provide several axiomatic characterizations of the permission-Owen value, grounded in principles of marginality and fairness.

Keywords: Fairness, Permission value, Owen value, Permission structures, Coalition structures, Liability situations