Games In Characteristic Form Research Articles

EGALITARIAN SOLUTION FOR GAMES WITH DISCRETE SIDE PAYMENT

In this paper, we study the egalitarian solution for games with discrete side payment, where the characteristic function is integer-valued and payoffs of players are integral vectors. The egalitarian solution, introduced by Dutta and Ray in 1989, is a solution concept for transferable utility cooperative games in characteristic form, which combines commitment for egalitarianism and promotion of indivisual interests in a consistent manner. We first point out that the nice properties of the egalitarian solution (in the continuous case) do not extend to games with discrete side payment. Then we show that the Lorenz stable set, which may be regarded a variant of the egalitarian solution, has nice properties such as the Davis and Maschler reduced game property and the converse reduced game property. For the proofs we utilize recent results in discrete convex analysis on decreasing minimization on an M-convex set investigated by Frank and Murota.

Approximate Core Allocation for Large Cooperative Security Games

Coalition games have been recently used for modeling a variety of security problems. From securing the wireless transmissions in decentralized networks to employing effective intrusion detection systems in large organizations, cooperation among interested parties has shown to bring significant benefits. Motivating parties to abide to a solution is, however, a key problem in bridging the gap between theoretical models and practical solutions. Benefits should be distributed among players (wireless nodes in a network, different divisions of an organization in security risk management, or organizations cooperating to fight spam), such that no group of players is motivated to break off and form a new coalition. This problem, referred to as core allocation, grows computationally very expensive with a large number of agents. In this paper, we present a novel approximate core allocation algorithm, called the bounding boxed core (BBC), for large cooperative security games in characteristic form that rely on superadditivity. The proposed algorithm is an anytime (an algorithm is called anytime if it can be interrupted at any time point during execution to return an answer whose value, at least in certain classes of stochastic processes, improves in expectation as a function of the computation time) algorithm based on iterative state space search for better solutions. Experimental results on a 25-player game, with roughly 34 million coalitions, show that BBC shrinks the 25-dimensional bounding-box to times its initial hypervolume.

CAPACITIES AND GAMES ON LATTICES: A SURVEY OF RESULTS

We provide a survey of recent developments about capacities (or fuzzy measures) and cooperative games in characteristic form, when they are defined on more general structures than the usual power set of the universal set, namely lattices. In a first part, we give various possible interpretations and applications of these general concepts, and then we elaborate about the possible definitions of usual tools in these theories, such as the Choquet integral, the Möbius transform, and the Shapley value.

Large newsvendor games

We consider a game, called newsvendor game, where several retailers, who face a random demand, can pool their resources and build a centralized inventory that stocks a single item on their behalf. Profits have to be allocated in a way that is advantageous to all the retailers. A game in characteristic form is obtained by assigning to each coalition its optimal expected profit. We consider newsvendor games with possibly an infinite number of newsvendors. We prove in great generality results about balancedness of the game, and we show that in a game with a continuum of players, under a nonatomic condition on the demand, the core is a singleton. For a particular class of demands we show how the core shrinks to a singleton when the number of players increases.

Complexity of constructing solutions in the core based on synergies among coalitions

Coalition formation is a key problem in automated negotiation among self-interested agents, and other multiagent applications. A coalition of agents can sometimes accomplish things that the individual agents cannot, or can accomplish them more efficiently. Motivating the agents to abide by a solution requires careful analysis: only some of the solutions are stable in the sense that no group of agents is motivated to break off and form a new coalition. This constraint has been studied extensively in cooperative game theory: the set of solutions that satisfy it is known as the core. The computational questions around the core have received less attention. When it comes to coalition formation among software agents (that represent real-world parties), these questions become increasingly explicit. In this paper we define a concise, natural, general representation for games in characteristic form that relies on superadditivity. In our representation, individual agents' values are given as well as values for those coalitions that introduce synergies. We show that this representation allows for efficient checking of whether a given outcome is in the core. We then show that determining whether the core is nonempty is NP-complete both with and without transferable utility. We demonstrate that what makes the problem hard in both cases is determining the collaborative possibilities (the set of outcomes possible for the grand coalition); we do so by showing that if these are given, the problem becomes solvable in time polynomial in the size of the representation in both cases. However, we then demonstrate that for a hybrid version of the problem, where utility transfer is possible only within the grand coalition, the problem remains NP-complete even when the collaborative possibilities are given. Finally, we show that for convex characteristic functions, a solution in the core can be computed efficiently (in O ( n l 2 ) time, where n is the number of agents and l is the number of synergies), even when the collaborative possibilities are not given in advance.

The Shapley Value of a Patent Licensing Game: the Asymptotic Equivalence to Non-cooperative Results

We consider a game in characteristic form played by firms and an outside patent holder of a cost-reducing innovation. The worth of a coalition of players is the total Cournot profit the coalition can guarantee to obtain when it operates an optimal number of its firms while the complement operates any number of its firms as to minimize the profit of the coalition. Only firms in a coalition with the patent holder are allowed to use the efficient technology. We prove that when the number of firms is large, the Shapley value of the patent holder approximates the payoff he obtains in the non-cooperative auction game traditionally studied in the literature.

Instability in the labor market for researchers

R&D is both an activity which involves team effort, and with many of the features of a zero-sum game. This paper shows that these characteristics make the labor market for researchers unstable in the sense that firms have incentives to continuously change the composition of their research teams. Related results concerning the core of several cooperative games in characteristic form are also proved.

Cooperative Outcomes through Noncooperative Games

This paper shows the equivalence between the stable solution set of any cooperative game in characteristic form (G1) and the subgame perfect Nash equilibria in pure strategies of a certain noncooperative game (G2). Players of G1 are named "agents." G2 is played by different players ("principals") who compete in wages to attract agents. The equivalence result holds when there are enough principals (if the game is superadditive, two principals suffice). Finally, another related cooperative game (G3) is constructed with both principals and agents as players. For G2 and G3 the same result is then proven, for any number of principals. Journal of Economic Literature Classification Numbers: C71 and C72.

An axiomatization of the core for finite and continuum games

We provide a new axiomatization of the core of games in characteristic form. The games may have either finite sets of players or continuum sets of players and finite coalitions. Our research is based on Peleg's axiomatization for finite games and on the notions of measurement-consistent partitions and the f-core introduced by Kaneko and Wooders. Since coalitions are finite in both finite games and in continuum games, we can use the reduced game property and the converse reduced game property for our axiomatization. Both properties are particularly appealing in large economies.