Allocation rules for fixed and flexible networks: the role of players and their links

Abstract

We propose an allocation rule that takes into account the importance of players and their links and characterizes it for a fixed network. Unlike previous rules, our characterization does not require component additivity. Next, we extend it to flexible networks a la Jackson (2005). Finally, we provide a comparison with other fixed (network Myerson and Position value) and flexible network (player and link based) allocation rules through a number of examples