We consider a situation in which agents have mutual claims on each other, summarized in a liability matrix. Agents' assets might be insufficient to satisfy their liabilities leading to defaults. We assume the primitives to be denoted in some unit of account. In case of default, bankruptcy rules...

This paper studies pillage games (Jordan in J Econ Theory 131.1:26-44, 2006, "Pillage and property"), which are well suited to modelling unstructured power contests. To enable empirical test of pillage games' predictions, it relaxes a symmetry assumption that agents' intrinsic contributions to a...

Existing cooperative game theoretic studies of bargaining power in gas pipeline systems are based on the so called characteristic function form (CFF). This approach is potentially misleading if some pipelines fall under regulated third party access (TPA). TPA, which is by now the norm in the EU,...

In coalitional games with uncertain payoffs, a deviating coalition can only form expectations regarding its post-deviation payoff. Classical approaches address the problem from the side of conservatism, expecting the worst, or by explicit assumptions of the emerging state of the world. We borrow...

We study linearly weighted versions of the least core and the (pre)nucleolus and investigatethe reduction possibilities in their computation. We slightly extend some well-known related results and establish their counterparts by using the dual game. Our main results imply, for example, that if...

One of the many important contributions in David Schmeidler's distinguished career was the introduction of the nucleolus. This paper is an update on the nucleolus and its two related supersolutions, i.e., the kernel and the bargaining set.

In this paper we focus on restrictions arising from the players belonging to some hierarchical structure that is represented by a digraph. Two of these models are the games with a permission structure and games under precedence constraints. In both cases, the hierarchy can be represented by a...

The concept of 'the core' originates in cooperative game theory and its introduction to economics in the 1960s as a basis for proofs of existence of general equilibrium is one of the earliest attempts to use game theory to address big questions in economics. Discovery of the core was met with...

A large theoretical literature on value capture following Brandenburger and Stuart Jr. (1996) uses cooperative games under complete information to study how and why firms earn supernormal profits. However, firms often have different information, beliefs, or creative foresight. We extend value...