Monotonicity of Social Optima With Respect to Participation Constraints
Jens Leth Hougaard, Hans Keiding, Lars Peter Østerdal
Abstract
Open-access reader
Jens Leth Hougaard, Hans Keiding, Lars Peter Østerdal
Abstract
Open-access reader
In this paper we consider solutions which select from the core.For games with side payments with at least four players, it is well-known that no core-selection satisfies monotonicity for all coalitions; for the particular class of core-selections found by maximizing a social welfare function over the core, we investigate whether such solutions are monotone for a given coalition.It is shown that if this is the case then the solution actually maximizes aggregate coalition payoff on the core.Furthermore, the social welfare function to be maximized exhibits larger marginal social welfare with respect to the payoff of any member of the coalition.The results may be used to show that there are no monotonic core selection rules of this type in the context of games without side payments.
A significance statement is not available in the OpenAlex record.
A contribution statement is not available in the OpenAlex record.
Method details are not available in the OpenAlex metadata.
Findings are not separately available in the OpenAlex metadata.
Limitations are not available in the OpenAlex metadata.
Application details are not available in the OpenAlex metadata.
In this paper we consider solutions which select from the core.For games with side payments with at least four players, it is well-known that no core-selection satisfies monotonicity for all coalitions; for the particular class of core-selections found by maximizing a social welfare function over the core, we investigate whether such solutions are monotone for a given coalition.It is shown that if this is the case then the solution actually maximizes aggregate coalition payoff on the core.Furthermore, the social welfare function to be maximized exhibits larger marginal social welfare with respect to the payoff of any member of the coalition.The results may be used to show that there are no monotonic core selection rules of this type in the context of games without side payments.
Key concepts: Core (optical fiber), Monotonic function, Stochastic game, Social welfare function, Mathematical economics, Context (archaeology), Welfare, Economics