Deposit Games With Reinvestment

CentER Discussion Paper Series No. 2007-22

21 Pages Posted: 22 May 2007

See all articles by Gerwald van Gulick

Gerwald van Gulick

Tilburg University - Tilburg University School of Economics and Management

Peter Borm

Tilburg University - Center for Economic Research (CentER); Tilburg University - Department of Econometrics & Operations Research

Anja De Waegenaere

Tilburg University - Department of Econometrics & OR, Netspar, and CentER

Ruud Hendrickx

Tilburg University - Center for Economic Research (CentER)

Date Written: March 2007

Abstract

In a deposit game coalitions are formed by players combining their capital. The proceeds of their investments then have to be divided among those players. The current model extends earlier work on capital deposits by allowing reinvestment of returns. Two specific subclasses of deposit games are introduced. It is seen that each term dependent deposit game possesses a core element. Capital dependent deposit games are also shown to have a core element and even a population monotonic allocation scheme if the revenue function exhibits increasing returns to scale. Furthermore, it is shown that all superadditive games are deposit games if one allows for debt.

Keywords: cooperative game theory, deposit games, core elements, population monotonic allocation schemes, superadditive games

JEL Classification: C71

Suggested Citation

van Gulick, Gerwald and Borm, Peter E. M. and De Waegenaere, Anja M.B. and Hendrickx, Ruud, Deposit Games With Reinvestment (March 2007). CentER Discussion Paper Series No. 2007-22. Available at SSRN: https://ssrn.com/abstract=987790 or http://dx.doi.org/10.2139/ssrn.987790

Gerwald Van Gulick (Contact Author)

Tilburg University - Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Peter E. M. Borm

Tilburg University - Center for Economic Research (CentER) ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Tilburg University - Department of Econometrics & Operations Research

Tilburg, 5000 LE
Netherlands

Anja M.B. De Waegenaere

Tilburg University - Department of Econometrics & OR, Netspar, and CentER ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Ruud Hendrickx

Tilburg University - Center for Economic Research (CentER) ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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