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On the set of imputations induced by the k-additive core

Abstract

An extension to the classical notion of core is the notion of kk-additive core, that is, the set of kk-additive games which dominate a given game, where a kk-additive game has its Möbius transform (or Harsanyi dividends) vanishing for subsets of more than kk elements. Therefore, the 1-additive core coincides with the classical core. The advantages of the kk-additive core is that it is never empty once k2k\geq 2, and that it preserves the idea of coalitional rationality. However, it produces kk-imputations, that is, imputations on individuals and coalitions of at most kk individuals, instead of a classical imputation. Therefore one needs to derive a classical imputation from a kk-order imputation by a so-called sharing rule. The paper investigates what set of imputations the kk-additive core can produce from a given sharing rule.

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