Two‐step coalition values for multichoice games

Two‐step coalition values for multichoice games

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Article ID: iaor20131255
Volume: 77
Issue: 1
Start Page Number: 65
End Page Number: 99
Publication Date: Feb 2013
Journal: Mathematical Methods of Operations Research
Authors: ,
Keywords: competition and coalition, Shapley value
Abstract:

We introduce and compare several coalition values for multichoice games. Albizuri defined coalition structures and an extension of the Owen coalition value for multichoice games using the average marginal contribution of a player over a set of orderings of the player’s representatives. Following an approach used for cooperative games, we introduce a set of nested or two‐step coalition values on multichoice games which measure the value of each coalition and then divide this among the players in the coalition using either a Shapley or Banzhaf value at each step. We show that when a Shapley value is used in both steps, the resulting coalition value coincides with that of Albizuri. We axiomatize the three new coalition values and show that each set of axioms, including that of Albizuri, is independent. Further we show how the multilinear extension can be used to compute the coalition values. We conclude with a brief discussion about the applicability of the different values.

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