Values for Environments with Externalities – the Average Approach
نویسندگان
چکیده
We propose the “average approach,” where the worth of a coalition is a weighted average of its worth for different partitions of the players’ set, as a unifying method to extend values for characteristic function form games. Our method allows us to extend the equal division value, the equal surplus value, the consensus value, the λ-egalitarian Shapley value, and the least-square family. For each of the first three extensions, we provide an axiomatic characterization of a particular value for partition function form games, for each of the last two extensions, we find a family of values that satisfy the properties. JEL classification: D62, C71.
منابع مشابه
Using a systemic thinking approach to study externalities of higher education policies: a critique of the paper-based faculty promotion regulations
In recent years, synergistic policies, regulations, and procedures have been developed in higher education that have resulted undesirable outcomes that have led the university to unethical behaviors in the research process. The irregular growth of universities and higher education institutions, changes in regulations of theses and dissertations, paper-based faculties promotion regulations are t...
متن کاملMonitoring process variability: a hybrid Taguchi loss and multiobjective genetic algorithm approach
The common consideration on economic model is that there is knowledge about the risk of occurrence of an assignable cause and the various cost parameters that does not always adequately describe what happens in practice. Hence, there is a need for more realistic assumptions to be incorporated. In order to reduce cost penalties for not knowing the true values of some parameters, this paper aims ...
متن کاملIdentifying Human Capital Externalities: Theory with an Application to US Cities
Identification of the strength of human capital externalities at the aggregate level is still not fully understood. The existing method may yield positive or negative externalities even if wages reflect marginal social products. We propose an approach that yields positive average human capital externalities if and only if the marginal social product of workers with above-average human capital e...
متن کاملSharing the surplus in games with externalities within and across issues∗
We consider environments in which agents can cooperate on multiple issues and externalities are present both within and across issues. We propose a way to extend (Shapley) values that have been put forward to deal with externalities within issues to games where there are externalities within and across issues. We characterize our proposal through axioms that extend the Shapley axioms to our mor...
متن کاملIdentifying Human-Capital Externalities: Theory with Applications
The identification of aggregate human-capital externalities is still not fully understood. The existing (Mincerian) approach confounds positive externalities with wage changes due to a downward sloping demand curve for human capital. As a result, the Mincerian approach yields positive externalities even when wages equal marginal social products. We propose an approach that identifies human-capi...
متن کامل