Big Boss Games, Clan Games, and Information Market Games

Abstract

This chapter discusses big boss games, clan games, and information market games. A trend in cooperative game theory is to consider the subclasses of games in characteristic function form and to study the behavior of solution concepts just on such a subclass. The chapter presents the definitions of all the three games and some economic situations, which gives rise to such games and discuss some properties of these classes and of the solution concepts. There are many economic situations that give rise to big boss games. The chapter presents one seller–many buyers situations of certain type; landlord-workers games with a concave production function; and bankruptcy games with one big claimant. Information market games turn out to be big boss games, where the big boss is the initially informed trader.