The equivalence of markets and games concerns the relationship between two sorts of structures that appear fundamentally different -- markets and games. Shapley and Shubik (1969) demonstrates that: (1) games derived from markets with concave utility functions generate totally balanced games...

This article describes the basic elements of the cooperative approach to game theory, one of the two counterparts of the discipline. After the presentation of some basic definitions, the focus will be on the core and the Shapley value, two of the most central solution concepts in cooperative...

In river systems, costly upstream pollution abatement creates downstream welfare gains. Absent adequate agreement on how to share the gains, upstream regions lack incentives to reduce pollution levels. We develop a model that makes explicit the impact of water quality on production benefits and...

We first observe that two of Maskin's results do not extend beyond three players: we construct a four-player partition function with nonpositive externalities whose unique solution is inefficient, as well as a four-player characteristic function that has a unique efficient solution for each...

This paper studies a procedural and axiomatic extension of the consensus value [cf. Ju et al. (2007)] to the class of partition function form games. This value is characterized as the unique function that satisfies efficiency, complete symmetry, the quasi-null player property and additivity. By...

Lloyd Shapley is considered one of the pioneers of game theory. His most prominent contributions are the inception and study of value theory and core theory. These two theories are the key to solving problems involving the allocation of goods or payoffs achievable through cooperation....

We define a partially consistent property for a solution of cooperative TU games, then use the consistent property to characterize the well-known Shapley value.

This is a summary of the author’s Ph.D. thesis supervised by Fioravante Patrone and Stefano Bonassi and defended on 25 May 2006 at the Università degli Studi di Genova. The thesis in written in English and a copy is available from the author upon request. This work deals with the discussion...

The aim of this paper is to analyze the interconnections between employment and unionization. We will also see how unemployment benefits drive the interplay of employment and unionization. The basic input into our model stems from cooperative game theory. Building on the Shapley value, several...

In this study we demonstrate how publicly available data can be used to work out the indirect importance of various hotel attributes for their visitors. We apply Shapley value decomposition of the recommendation rate to compute the percentage contributions of various attributes to the overall...