GENERALIZED EXTERNALITY GAMES

Abstract

Externality games are studied in Grafe et al. (1998). We define a generalization of this class of games and show, using the methodology in Izquierdo and Rafels (1996 and 2001), some properties of the new class of generalized externality games. They include, among others, the algebraic structure of the game, convexity, and their implication for the study of cooperative solutions. Also the proportional rule is characterized for this class of games.