Abstract
A cooperative game describes a situation in which a finite set of n players can generate certain profits by their cooperation. How to allocate the profits effectively among each player is very important and it will affect the stability and the sustainable development of their cooperation. In this paper, by analyzing the characteristics of the existing solutions to solve the profit allocation problem, some concepts such as cooperative unit, perfect matching pair are firstly defined, a construction method of matching order is proposed. Then a new solution called matching value is defined, its basic properties are discussed by a series of theorems. Finally, a matching value under total coalition structure is defined and its axiomatization is proved by three axioms.
Introduction
In a general way, game theory studies cooperative and conflict models using mathematical methods. This paper is about the cooperative game theory [1] which is an important theoretical branch of the game theory. As it can deal with many cooperative phenomena in the real life, many theoretical results of it have achieved important applications in some areas, such as economics, politics [2, 3].
Given a cooperative game, the main problem that arises is how to assign the profit to each player in a reasonable way. In some cases, some players constitute a coalition by mutual cooperation and choice, their most concerned problem is that how to allocate the profit effectively and reasonably. In order to solve this problem, it involves the solution concepts of the cooperative games. Now there are many solution concepts which were defined from different point of view, they can roughly be divided into two major categories: dominant solutions and valuation solutions. Dominant solutions are usually a subset of all imputations and they are consisted by infinite multiple elements. Some usually used dominant solutions are introduced as follows: in 1944, the concept of stable set [4] was put forward by Von Neumann and Morgenstern from the dominance point of view, in 1953, the definition of core [5] was given by Gillies, in 1964, the concept of negotiation set [6] was defined by Aumann and Maschler by the possible mutual negotiations between players, in 1965, the kernel [7] was defined by Davis and Maschler based on the beyond value, in 1969, Nucleolus [8] was proposed based on the beyond values and the dictionary sequence. Unlike the dominant solutions, valuation solutions are usually single-value solutions, some important valuation solutions are introduced as follows: in 1953, Shapley value [9] was proposed by Shapley and its existence and uniqueness were proved, in 1965, Banzhaf value [10] was initially introduced in the context of voting games, in 1977, Owen value [11] was presented by Owen and its axiomatic method is proved, in the same year, Myerson value [12] was proposed by graph theory to study some feasible coalitions, in 1981, τ-value was defined by Tijs [13–15] from the geometry point of view and its relation with the core was discussed. In addition, there are many other solutions of the cooperative games, such as: consensus value [16], the minimum norm solution [17], Raiffa negotiated solution [18], Alexia values [19], procedural value [20], solidarity value [21] and so on. Based on the introduction of the above solutions, it is easy to see that both the dominant solutions and the valuation solutions are gotten on the premise of the grand coalition can be formed, and the relationship between the coalition formation and the profit allocation are totally ignored. Although the final solution is only decided by different coalition values, a contradiction with the existence of the grand coalition may exist for these completely regardless the relationship among the coalition, coalition values and the final allocation. And even some challenges to the rationality and fairness of the existing solutions may appear for their not considering the implied correlation between each coalition.
Therefore, based on the above analysis, in this paper, we have done the following work: 1) The relations between coalition formation and the profit allocation are analyzed, some concepts such as cooperative unit, perfect matching pair are defined, a construction method of matching order is developed, some related theorems are given to prove the existence of the perfect matching pair and many feasible coalition structures are achieved. 2) The structure of the grand coalition is obtained, a matching value is defined and some basic properties of it are discussed by a series of theorems. 3) Based on the form of all coalition structures, a matching value under total coalition structure is proved by three axioms, the effectives of the matching value are verified by a concrete example.
The rest of this paper is structured as follows: Preliminaries are introduced in Section 2. In Section 3, some important concepts are firstly proposed, a construction method of matching order is developed, and then a new solution called matching value is defined, a series of theorems are developed to discuss its properties. In Section 4, based on the forms of all coalition structures, a matching value under total coalition structure is defined, an axiomatization is proved and an example is given to verify the effectives of the matching value. The conclusions and further studies are discussed in Section 5.
Preliminaries
Concepts of classical cooperative games
A classical cooperative game in coalition form is an ordered pair (N, v), where N = {1, 2, …, n} is the set of players, and v:2N → R is a map, assigning to each coalition S ∈ 2 N a real number v(S), such that v(∅) = 0. This function v is called the characteristic function of the game and v(S) is called the worth (or value) of coalition S.
Throughout this paper, we shall have frequent occasion to consider some basic concepts and properties of (N, v), which are defined as follows (see [22–26]).
Following, we write v(i) instead of v({ i}), N ∖ i instead of N ∖ {i} and v(S ∪ i) instead of v(S ∪ { i}) in abbreviation.
We denote by E (v) the set of all imputations.
In (5), x (S) = ∑x i , i ∈ S, x (N) = ∑x i , i ∈ N .
It is easy to see that there are some disadvantages of the core. For example, the core is usually an empty set and sometimes the core solution is not unique. In addition, it is not monotonic about coalition S. We also can see that Shapley value does not satisfy the independent test, that is to say, Shapley value is not always contained in the core. What is more, it does not take into account the externality problem of a coalition formation, when a new player joins or quits a coalition, the Shapley value cannot reflect the influence on other players or coalitions. Based on the above analysis, both the core and the Shapley value have their relative deficiencies. Therefore, in the next Section, we will try to define a new solution concept which has some good properties.
Core and Shapley value are aim to allocate the profits after a coalition is formed. However, the process of coalition formation and profit allocation are mutually influenced. Therefore, in this Section, we will combine these two phases together to propose a new solution concept.
A construction method of matching order
The formation process of a coalition is very complex, many factors may affect this process. In order to show this process effectively, we firstly give the following Definitions.
If a unit link is completed, a perfect matching pair is formed. Following we describe a possible formation process of the grand coalition {1, 2, 3, 4, 5} by Fig. 1.
Figure 1 only shows a simple form of the possible formation process. In fact, there are many kinds of possible situations. So the discussion on what kinds of coalition can be formed is really important. In this process, the construction of perfect matching pair is the key link. So following we will define an effective order relation between each cooperative units.
We have known that a unit link involves two cooperative units, sometimes there is a specialty that there is no other difference besides their sizes. So we allocate the net surplus by the standard residual rule, i.e. if there are two units A and B in a cooperation process, unit A will get
Unit B will get
If we set the cooperative unit A and B as the single player, then this allocation result is the same as Shapley value and it is contained in the core.
1) Reflexivity
2) Antisymmetry
3) Transitivity
, we have A : B C or A : C B.
By the arbitrariness of k, we obtain
It follows from Definition 12 and R1 : R2 R
q
that
R
q
: R1 Rq-1 implies that
Consequently we can get
Hence this theorem is true, and in the above inequalities, we should choose the equal sign, so we obtain R1 : R2 = R q R k , R q : R1 = Rq-1 R k , that is to say, R1 : R q R k , R q : R1 R k , ∀k ∈ {1, …, m} ∖ {1, q}, so R1 and R q constitute a perfect matching pair and the proof of this theorem is complete.
Now we consider the set of all cooperative units , we denote by the set of their corresponding first priority matching units. If , it follows from Theorem 5 that this Theorem is true, if , we ignore the cooperative units in , we can get the new set of cooperative units and the set of their corresponding first priority matching units, as it going on, for , there must exist at least a perfect matching pair.
By the discussion in Section 3.1, the grand coalition is finally formed. As the players join the coalition with different orders, so the coalition structure also has some differences, if a player joins the coalition earlier, the coalition structure will become more complex, so we can have the following Definition.
j ≠ i and S jk j = N ∖ S ik i .
Following we define the final profits of each player from the structural units point of view.
Let (N, ν) be a cooperative game, k
i
the number of structural units of player i, the set of all structural units is denoted by . Player i firstly chooses Si1, the profit of player i is
Thus the profit of player i is
Then Si2 ∪ Si1 ∪ {i} will choose Si3 to constitute a perfect matching pair, the profit of player i is
Therefore, we can give the formula of the structure matching value shown as follows.
is called the structural units of player i, k i is the number of the structural units, we call ψ i a structural matching value of player i.
In Section 3.1, we know that the structure of the grand coalition is not unique. Usually we have the following specialty, for example, in the process of coalition formation, if A : B = C, B : A C and C : A B, so A and B or A and C can constitute the perfect matching. Under this circumstance, we need to average all the possible structure matching value. So we have the following Definition.
Generally speaking, u is usually equal to 1 of cooperative game (N, ν), there may exists many possible grand coalitions only if some special cases appear, in this case, we need to average them.
By the above Definitions and Theorems, We can easily get the following properties of (N, ν).
From the above Theorems, we can see that matching value has good properties, following we will discuss its relation with other solutions, we firstly give the following lemma.
So Lemma 1 holds good.
the Shapley value of player i is
For simplicity, we denote the above φ i (v) as (*). It is clearly that when n = 2, (*) holds true, when n = 3, all possible grand coalition structures are shown in Fig. 2.
We can calculate the matching value under the above three circumstances shown as follows.
Thus (ɛ1 + ɛ2) then we can calculate ψ2 (v) and ψ3 (v) ψ i (v) = v (i) + 1/ - 3 (ɛ1 + ɛ2), ∀i ∈ N = {1, 2, 3}
Consequently when n = 3, (*) holds good.
Now we suppose that when n = k, k ≥ 3, (*) holds. When n = k + 1, it means that one more player k + 1 is added, when n = k, we set {k + 1} = Nk+1 ∖ N
k
. Henceforth v (Nk+1) - v (N
k
) = v (k + 1) + ɛ
k
. Then we get
Therefore, ɛ
k
is exceeded of the net surplus for each player. Since the appearing probabilities of all the grand coalition structures are the same, so we can average all the net surplus. Then we obtain
In summary, (*) holds good and the proof of this theorem is complete.
By Section 3, we can know that if we remove the constraint condition of the perfect matching, then any two cooperative units can constitute a unit link. Then we can get the following conclusion.
By Theorem 14, the total number of all the coalition structures is , we can obtain the structure units of player 1 is:
, , {{2, 3}}, thus we get 1/ - 3, then we obtain
We get two cooperative models from (N, v) which are denoted by (R, vR,x) and (N ∖ R, vN∖R,x) respectively, in (R, vR,x), for the constructed mode of coalition structure, there exists a coalition structure L
R
, such that ∀i ∈ R, we have . Thus
Since v(R) = x (R) - |R| * , therefore
So
Therefore, we can have
∀i ∈ N ∖ R, , and . By Definition 17, we obtain
x R ∈ M (R, vR,x) and xN∖R ∈ M (N ∖ R, vN∖R,x)
So we can have
We get x ∈ σ (N, v), then σ satisfies the association balance fixed reduction properties (we call it ABFR for short).
So then we can conclude
We set w = vR,x, y = x
R
, so y ∈ M (R, w). By Theorem 17, there exist Q ⊂ R such that
It follows that
For
Hence
For R, we can get Q and R ∖ Q, for Q, we have P ⊂ Q, such that
then we get
So for i ∈ N, we get x (i) = ψ i . Therefore x ∈ M (N, v) and this completes the proof.
Prior to giving the axiomatization theorem of the total coalition structure matching value, we will give an important lemma.
For σ satisfies RBFR, there exists R ⊂ N, such that
For N = {1, 2}, then x1 - v (1) = x2 - v (2), we obtain
Then we give an axiomatization theorem of the total coalition structure matching value.
So we can have
C is a constant. For σ satisfies ABFR, we can get
If |S2|=2, we set S2 = Q, by Lemma 2, we get x
S
2
∈ σ (S2, vS2,x), then we obtain
C′ is a constant, then we have
If |S2|≥3, then the coalition structure of S2 must be constituted by some cooperative units just like P and Q, for however many P and Q constitute the perfect matching pair with S1, a new cooperative unit T is gotten and x
T
∈ σ (T, vT,x). Thus xS1∪S2 ∈ σ (S1 ∪ S2, vS1∪S2,x) is true. So we do not stop to finish the unit link for S1 ∪ S2 until S1 ∪ S2 ∪ ⋯ ∪ S
k
= N, by the above analysis, we get
Because σ satisfies ABFR, we conclude that x (N) = xS1∪S2∪⋯∪Sk-1∪S k ∈ σ (N, vN,x) = σ (N, v), that is, x ∈ σ, thus M (v) ⊆ σ, for σ ⊆ M (v), so σ = M (v), the uniqueness is proved and the proof of this theorem is complete.
In order to verify the effectiveness of the matching value defined in this paper, we will give the following Example.
1) We use the core to give the final allocation result.
2) We use the Shapley value to give the finalallocation result. Suppose player {1} and {2} arefirstly constitute a coalition R = {1, 2}, we get φ1 (v) = 84, φ2 (v) = 120, then {3} joins their coalition to constitute the grand coalition {1, 2, 3}, we get the final allocation results by Shapley value . Since φ3 (v) = 89 > v (3), , , so {1, 2} will not agree with {3} to constitute the grand coalition N = {1, 2, 3}. So the final allocation result is x = (84, 120, 84). However, for this allocation result, we can easily find that v (N) =291 > v (1, 2) + v (3), thus the collective rationality is not satisfied.
3) We use the matching value to give the final allocation result. We get that {1} and {2} constitute a coalition {1, 2}, ψ1 (v) = 84, ψ2 (v) = 120, when {3} joins {1, 2}, . We have
We can easily verify that it belongs to the core. By this example, we can get the conclusion that the matching value can maximize the group profits. Under the incomplete cooperation circumstances, the grand coalition is gotten, compared with the Shapley value, it is more close to the reality, because not all the coalitions can be formed in reality. For each player in this coalition, player 1 and 2 can get their satisfactory profits, player 3 also can get his ideal profits on the premise that he joins the grand coalition.
Conclusions and further study
In this paper, the formation process of the grand coalition is firstly discussed, some concepts such as perfect matching pair, matching order are defined, then a new solution called matching value is proposed, its basic properties are discussed by a series of theorems, and then based on the forms of all coalition structures, a matching value under total coalition structure is proved by three axioms, the characteristics and performance of the matching value are shown by an example. Thus the discussion on the applications of the matching value will be our next step of work.
Footnotes
Acknowledgments
This work was supported by the National Natural Science Foundation of China and the Specialized Research Fund for the Doctoral Program of Higher Education (No. 71071018, 71371030, 20111101110036, 71271029).
