Some structural properties of a lattice of embedded coalitions

In this paper we investigate some structural properties of the order on the set of embedded coalitions outlined in de Clippel and Serrano (2008). Besides, we characterize the scalars associated to the basis they proposed of the vector space of partition function form games

On Convexity in Games with Externalities

We introduce new notions of superadditivity and convexity for games with coalitional externalities. We show parallel results to the classic ones for transferable utility games without externalities. In superadditive games the grand coalition is the most efficient organization of agents. The convexity of a game is equivalent to having non decreasing contributions to larger embedded coalitions. We also see that convex games can only have negative externalitie

The family of lattice structure values for games with externalities

We propose and characterize a new family of Shapley values for games with coalitional externalities. To define it we generalize the concept of marginal contribution by using a lattice structure on the set of embedded coalitions. The family of lattice structure values is characterized by extensions of Shapley's axioms: efficiency, additivity, symmetry, and the null player property. The first three axioms have widely accepted generalizations to the framework of games with externalities. However, different concepts of null players have been proposed in the literature and we contribute to this debate with a new one. The null player property that we use is weaker than the others. Finally, we present one particular value of the family, new in the literature, which delivers balanced payoffs and characterize it by two additional properties

Complete null agent for games with externalities

Game theory provides valuable tools to examine expert multi-agent systems. In a cooperative game, collaboration among agents leads to better outcomes. The most important solution for such games is the Shapley value, that coincides with the expected marginal contribution assuming equiprobability. This assumption is not plausible when externalities are present in an expert system. Generalizing the concept of marginal contributions, we propose a new family of Shapley values for situations with externalities. The properties of the Shapley value offer a rationale for its application. This family of values is characterized by extensions of Shapley's axioms: efficiency, additivity, symmetry, and the null player property. The first three axioms have widely accepted generalizations to the framework of games with externalities. However, different concepts of null players have been proposed in the literature and we contribute to this debate with a new one. The null player property that we use is weaker than the others. Finally, we present one particular value of the family, new in the literature, and characterize it by two additional properties

A new order on embedded coalitions: Properties and Applications

Given a finite set of agents, an embedded coalition consists of a coalition and a partition of the rest of agents. We study a partial order on the set of embedded coalitions of a finite set of agents. An embedded coalition precedes another one if the first coalition is contained in the second and the second partition equals the first one after removing the agents in the second coalition. This poset is not a lattice. We describe the maximal lower bounds and minimal upper bounds of a finite subset, whenever they exist. It is a graded poset and we are able to count the number of elements at a given level as well as the total number of chains. The study of this structure allows us to derive results for games with externalities. In particular, we introduce a new concept of convexity and show that it is equivalent to having non-decreasing contributions to embedded coalitions of increasing size

Marginality and convexity in partition function form games

In this paper an order on the set of embedded coalitions is studied in detail. This allows us to define new notions of superaddivity and convexity of games in partition function form which are compared to other proposals in the literature. The main results are two characterizations of convexity. The first one uses non-decreasing contributions to coalitions of increasing size and can thus be considered parallel to the classic result for cooperative games without externalities. The second one is based on the standard convexity of associated games without externalities that we define using a partition of the player set. Using the later result, we can conclude that some of the generalizations of the Shapley value to games in partition function form lie within the cores of specific classic games when the original game is convex

Condorcet Domains, Median Graphs and the Single Crossing Property

Condorcet domains are sets of linear orders with the property that, whenever the preferences of all voters belong to this set, the majority relation has no cycles. We observe that, without loss of generality, such domain can be assumed to be closed in the sense that it contains the majority relation of every profile with an odd number of individuals whose preferences belong to this domain. We show that every closed Condorcet domain is naturally endowed with the structure of a median graph and that, conversely, every median graph is associated with a closed Condorcet domain (which may not be a unique one). The subclass of those Condorcet domains that correspond to linear graphs (chains) are exactly the preference domains with the classical single crossing property. As a corollary, we obtain that the domains with the so-called `representative voter property' (with the exception of a 4-cycle) are the single crossing domains. Maximality of a Condorcet domain imposes additional restrictions on the underlying median graph. We prove that among all trees only the chains can induce maximal Condorcet domains, and we characterize the single crossing domains that in fact do correspond to maximal Condorcet domains. Finally, using Nehring's and Puppe's (2007) characterization of monotone Arrowian aggregation, our analysis yields a rich class of strategy-proof social choice functions on any closed Condorcet domain