In the model of Funaki and Yamato (1999) the tragedy of the commons can be avoided with pessimistic players, while this does not hold for optimistic players. We propose a new core concept to overcome this puzzle and provide numerical simulations of simple games where the conclusions coincide or...

Due to the externalities, in normal form games a deviation changes the payoff of all players inducing a retaliation by the remaining or residual players. The stability of an outcome depends on the expectations potential deviators have about this reaction, but so far no satisfactory theory has...

A set of outcomes for a TU-game in characteristic function form is dominant if it is, with respect to an outsider-independent dominance relation, accessible (or admissible) and closed. This outsider-independent dominance relation is restrictive in the sense that a deviating coalition cannot...

We prove the existence of an upper bound for the number of blockings required to get from one imputation to another provided that accessibility holds. The bound depends only on the number of players in the TU game considered. For the class of games with non-empty cores this means that the core...

For each outcome (i.e. a payoff vector augmented with a coalition structure) of a TU-game with a non-empty coalition structure core there exists a finite sequence of successively dominating outcomes that terminates in the coalition structure core. In order to obtain this result a restrictive...

The measurement and the allocation of risk are fundamental problems of portfolio management. Coherent measures of risk provide an axiomatic approach to the former problem. In an environment given by a coherent measure of risk and the various portfolios’ realization vectors, risk allocation...

We present a new solution to partition function form games that is novel in at least two ways. Firstly, the solution exploits the consistency of the partition function form, namely that the response to a deviation is established as the same solution applied to the residual game, itself a...