Games With Limited Communication Structure

CentER Discussion Paper Series No. 2007-19

12 Pages Posted: 22 May 2007

See all articles by Dolf Talman

Dolf Talman

Tilburg University - Department of Econometrics & Operations Research

Yoshitsugu Yamamoto

University of Tsukuba

Date Written: February 2007

Abstract

In this paper we consider cooperative transferable utility games with limited communication structure, called graph games. Agents are able to cooperate with each other only if they can communicate directly or indirectly with each other. For the class of acyclic graph games recently the average tree solution has been proposed. It was proven that the average tree solution is a core element if the game exhibits superadditivity. It will be shown that the condition of super-additivity can be relaxed to a weaker condition, which admits for a natural interpretation. Moreover, the concept of subcore is introduced. Under the same condition it is proven that the subcore is a subset of the core and always contains the average tree solution and therefore is a non-empty refinement of the core.

Keywords: limited communication structure, acyclic undirected graph, super-additivity, core, average tree solution

JEL Classification: C71

Suggested Citation

Talman, Dolf J. J. and Yamamoto, Yoshitsugu, Games With Limited Communication Structure (February 2007). CentER Discussion Paper Series No. 2007-19, Available at SSRN: https://ssrn.com/abstract=987780 or http://dx.doi.org/10.2139/ssrn.987780

Dolf J. J. Talman (Contact Author)

Tilburg University - Department of Econometrics & Operations Research ( email )

Tilburg, 5000 LE
Netherlands
+31 13 466 2346 (Phone)

Yoshitsugu Yamamoto

University of Tsukuba ( email )

Tsukuba University , Ibaraki Ken
Tsukuba, Ibaraki 305-8573, Ibaraki 3050006
Japan

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