On the Complexity of Core, Kernel, and Bargaining Set

Coalitional games are mathematical models suited to analyze scenarios where players can collaborate by forming coalitions in order to obtain higher worths than by acting in isolation. A fundamental problem for coalitional games is to single out the most desirable outcomes in terms of appropriate notions of worth distributions, which are usually called solution concepts. Motivated by the fact that decisions taken by realistic players cannot involve unbounded resources, recent computer science literature reconsidered the definition of such concepts by advocating the relevance of assessing the amount of resources needed for their computation in terms of their computational complexity. By following this avenue of research, the paper provides a complete picture of the complexity issues arising with three prominent solution concepts for coalitional games with transferable utility, namely, the core, the kernel, and the bargaining set, whenever the game worth-function is represented in some reasonable compact form (otherwise, if the worths of all coalitions are explicitly listed, the input sizes are so large that complexity problems are---artificially---trivial). The starting investigation point is the setting of graph games, about which various open questions were stated in the literature. The paper gives an answer to these questions, and in addition provides new insights on the setting, by characterizing the computational complexity of the three concepts in some relevant generalizations and specializations.Comment: 30 pages, 6 figure

An efficient algorithm for nucleolus and prekernel computation in some classes of TU-games

We consider classes of TU-games. We show that we can efficiently compute an allocation in the intersection of the prekernel and the least core of the game if we can efficiently compute the minimum excess for any given allocation. In the case where the prekernel of the game contains exactly one core vector, our algorithm computes the nucleolus of the game. This generalizes both a recent result by Kuipers on the computation of the nucleolus for convex games and a classical result by Megiddo on the nucleolus of standard tree games to classes of more general minimum cost spanning tree games. Our algorithm is based on the ellipsoid method and Maschler's scheme for approximating the prekernel. \u

Simultaneous Nash Bargaining with Consistent Beliefs

We propose and analyze a new solution concept, the R solution, for three-person, transferable utility, cooperative games. In the spirit of the Nash Bargaining Solution, our concept is founded on the predicted outcomes of simultaneous, two-party negotiations that would be the alternative to the grand coalition. These possibly probabilistic predictions are based on consistent beliefs. We analyze the properties of the R solution and compare it with the Shapley value and other concepts. The R solution exists and is unique. It belongs to the bargaining set and to the core whenever the latter is not empty. In fact, when the grand coalition can simply execute one of the three possible bilateral trades, the R solution is the most egalitarian selection of the bargaining set. Finally, we discuss how the R solution changes important conclusions of several well known Industrial Organization models.cooperative games, bargaining, endogenous fall-back options, consistent beliefs, R solution.

Complexity of Determining Nonemptiness of the Core

Coalition formation is a key problem in automated negotiation among self-interested agents, and other multiagent applications. A coalition of agents can sometimes accomplish things that the individual agents cannot, or can do things more efficiently. However, motivating the agents to abide to a solution requires careful analysis: only some of the solutions are stable in the sense that no group of agents is motivated to break off and form a new coalition. This constraint has been studied extensively in cooperative game theory. However, the computational questions around this constraint have received less attention. When it comes to coalition formation among software agents (that represent real-world parties), these questions become increasingly explicit. In this paper we define a concise general representation for games in characteristic form that relies on superadditivity, and show that it allows for efficient checking of whether a given outcome is in the core. We then show that determining whether the core is nonempty is $\mathcal{NP}$-complete both with and without transferable utility. We demonstrate that what makes the problem hard in both cases is determining the collaborative possibilities (the set of outcomes possible for the grand coalition), by showing that if these are given, the problem becomes tractable in both cases. However, we then demonstrate that for a hybrid version of the problem, where utility transfer is possible only within the grand coalition, the problem remains $\mathcal{NP}$-complete even when the collaborative possibilities are given

Cooperative Games with Bounded Dependency Degree

Cooperative games provide a framework to study cooperation among self-interested agents. They offer a number of solution concepts describing how the outcome of the cooperation should be shared among the players. Unfortunately, computational problems associated with many of these solution concepts tend to be intractable---NP-hard or worse. In this paper, we incorporate complexity measures recently proposed by Feige and Izsak (2013), called dependency degree and supermodular degree, into the complexity analysis of cooperative games. We show that many computational problems for cooperative games become tractable for games whose dependency degree or supermodular degree are bounded. In particular, we prove that simple games admit efficient algorithms for various solution concepts when the supermodular degree is small; further, we show that computing the Shapley value is always in FPT with respect to the dependency degree. Finally, we note that, while determining the dependency among players is computationally hard, there are efficient algorithms for special classes of games.Comment: 10 pages, full version of accepted AAAI-18 pape

Bartering integer commodities with exogenous prices

The analysis of markets with indivisible goods and fixed exogenous prices has played an important role in economic models, especially in relation to wage rigidity and unemployment. This research report provides a mathematical and computational details associated to the mathematical programming based approaches proposed by Nasini et al. (accepted 2014) to study pure exchange economies where discrete amounts of commodities are exchanged at fixed prices. Barter processes, consisting in sequences of elementary reallocations of couple of commodities among couples of agents, are formalized as local searches converging to equilibrium allocations. A direct application of the analyzed processes in the context of computational economics is provided, along with a Java implementation of the approaches described in this research report.Comment: 30 pages, 5 sections, 10 figures, 3 table

A Logic-Based Representation for Coalitional Games with Externalities

We consider the issue of representing coalitional games in multiagent systems that exhibit externalities from coalition formation, i.e., systems in which the gain from forming a coalition may be affected by the formation of other co-existing coalitions. Although externalities play a key role in many real-life situations, very little attention has been given to this issue in the multi-agent system literature, especially with regard to the computational aspects involved. To this end, we propose a new representation which, in the spirit of Ieong and Shoham [9], is based on Boolean expressions. The idea behind our representation is to construct much richer expressions that allow for capturing externalities induced upon coalitions. We show that the new representation is fully expressive, at least as concise as the conventional partition function game representation and, for many games, exponentially more concise. We evaluate the efficiency of our new representation by considering the problem of computing the Extended and Generalized Shapley value, a powerful extension of the conventional Shapley value to games with externalities. We show that by using our new representation, the Extended and Generalized Shapley value, which has not been studied in the computer science literature to date, can be computed in time linear in the size of the input