Finding the nucleolus of any n-person cooperative game by a single linear program

In this paper we show a new method for calculating the nucleolus by solving a unique minimization linear program with Oð4n Þ constraints whose coefficients belong to f−1; 0; 1g. We discuss the need of having all these constraints and empirically prove that they can be reduced to Oðkmax2n Þ, where kmax is a positive integer comparable with the number of players. A computational experience shows the applicability of our method over (pseudo)random transferable utility cooperative games with up to 18 playersThe authors want to thank Javier Arin, Safae El Haj Ben Ali, Guillermo Owen and Johannes H. Reijnierse for their useful and valuable help. The research of the authors has been partially supported by the projects FQM-5849 (Junta de Andalucia \ FEDER), and by the project MTM2010-19576-C02-01 (MICINN, Spain). This paper was written while the second author was enjoying a grant for a short postdoctoral research visit at the Instituto Universitario de Investigacion de Matematicas de la Universidad de Sevilla (IMUS). Special thanks are due to one anonymous referee for his/her valuable comments.Puerto Albandoz, J.; Perea Rojas Marcos, F. (2013). Finding the nucleolus of any n-person cooperative game by a single linear program. Computers and Operations Research. 40(10):2308-2313. https://doi.org/10.1016/j.cor.2013.03.011S23082313401

Computing the Least-core and Nucleolus for Threshold Cardinality Matching Games

Cooperative games provide a framework for fair and stable profit allocation in multi-agent systems. \emph{Core}, \emph{least-core} and \emph{nucleolus} are such solution concepts that characterize stability of cooperation. In this paper, we study the algorithmic issues on the least-core and nucleolus of threshold cardinality matching games (TCMG). A TCMG is defined on a graph $G=(V,E)$ and a threshold $T$, in which the player set is $V$ and the profit of a coalition $S\subseteq V$ is 1 if the size of a maximum matching in $G[S]$ meets or exceeds $T$, and 0 otherwise. We first show that for a TCMG, the problems of computing least-core value, finding and verifying least-core payoff are all polynomial time solvable. We also provide a general characterization of the least core for a large class of TCMG. Next, based on Gallai-Edmonds Decomposition in matching theory, we give a concise formulation of the nucleolus for a typical case of TCMG which the threshold $T$ equals $1$. When the threshold $T$ is relevant to the input size, we prove that the nucleolus can be obtained in polynomial time in bipartite graphs and graphs with a perfect matching

Cooperative game theory and its application to natural, environmental, and water resource issues : 3. application to water resources

This paper reviews various applications of cooperative game theory (CGT) to issues of water resources. With an increase in the competition over various water resources, the incidents of disputes have been in the center of allocation agreements. The paper reviews the cases of various water uses, such as multi-objective water projects, irrigation, groundwater, hydropower, urban water supply, wastewater, and transboundary water disputes. In addition to providing examples of cooperative solutions to allocation problems, the conclusion from this review suggests that cooperation over scarce water resources is possible under a variety of physical conditions and institutional arrangements. In particular, the various approaches for cost sharing and for allocation of physical water infrastructure and flow can serve as a basis for stable and efficient agreement, such that long-term investments in water projects are profitable and sustainable. The latter point is especially important, given recent developments in water policy in various countries and regional institutions such as the European Union (Water Framework Directive), calling for full cost recovery of investments and operation and maintenance in water projects. The CGT approaches discussed and demonstrated in this paper can provide a solid basis for finding possible and stable cost-sharing arrangements.Town Water Supply and Sanitation,Environmental Economics&Policies,Water Supply and Sanitation Governance and Institutions,Water Supply and Systems,Water and Industry

The nucleolus and kernel of veto-rich transferable utility games

Game Theory

Cooperative game theory and its application to natural, environmental, and water resource issues : 2. application to natural and environmental resources

This paper provides a review of various applications of cooperative game theory (CGT) to issues of natural and environmental resources. With an increase in the level of competition over environmental and natural resources, the incidents of disputes have been at the center of allocation agreements. The paper reviews the cases of common pool resources such as fisheries and forests, and cases of environmental pollution such as acid rain, flow, and stock pollution. In addition to providing examples of cooperative solutions to allocation problems, the conclusion from this review suggests that cooperation over scarce environmental and natural resources is possible under a variety of physical conditions and institutional arrangements. CGT applications to international fishery disputes are especially useful in that they have been making headway in policy-related agreements among states and regions of the world. Forest applications are more local in nature, but of great relevance in solving disputes among communities and various levels of governments.Environmental Economics&Policies,Fisheries&Aquaculture,Common Property Resource Development,Economic Theory&Research,Ecosystems and Natural Habitats

Universal characterization sets for the nucleolus in balanced games

We provide a new mo dus op erandi for the computation of the nucleolus in co op- erative games with transferable utility. Using the concept of dual game we extend the theory of characterization sets. Dually essential and dually saturated coalitions determine b oth the core and the nucleolus in monotonic games whenever the core is non-empty. We show how these two sets are related with the existing charac- terization sets. In particular we prove that if the grand coalition is vital then the intersection of essential and dually essential coalitions forms a characterization set itself. We conclude with a sample computation of the nucleolus of bankruptcy games - the shortest of its kind

Horizontal collaboration in forestry: game theory models and algorithms for trading demands

In this paper, we introduce a new cooperative game theory model that we call production-distribution game to address a major open problem for operations research in forestry, raised by R\"onnqvist et al. in 2015, namely, that of modelling and proposing efficient sharing principles for practical collaboration in transportation in this sector. The originality of our model lies in the fact that the value/strength of a player does not only depend on the individual cost or benefit of the objects she owns but also depends on her market shares (customers demand). We show however that the production-distribution game is an interesting special case of a market game introduced by Shapley and Shubik in 1969. As such it exhibits the nice property of having a non-empty core. We then prove that we can compute both the nucleolus and the Shapley value efficiently, in a nontrivial and interesting special case. We in particular provide two different algorithms to compute the nucleolus: a simple separation algorithm and a fast primal-dual algorithm. Our results can be used to tackle more general versions of the problem and we believe that our contribution paves the way towards solving the challenging open problem herein