Games with externalities: games in coalition configuration function form

Abstract

In this paper we introduce a model of cooperative game with externalities which generalizes games in partition function form by allowing players to take part in more than one coalition. We provide an extension of the Shapley value (1953) to these games, which is a generalization of the Myerson value (1977) for games in partition function form. This value is derived by considering an adaptation of an axiomatic characterization of the Myerson value (1977).