The subgame-consistent shapley value for dynamic network games with shock

L Petrosyan, A Sedakov - Dynamic Games and Applications, 2016 - Springer
Dynamic Games and Applications, 2016Springer
In the paper, cooperative repeated network games containing network formation stages are
studied. After the first network formation stage, a particular player with a given probability
may stop influencing other players by removing all her links and receiving zero payoffs. This
effect is called “shock.” The effect of shock may appear only once, and the stage number, at
which shock appears, is chosen at random. In the cooperative scenario of the game,
subgame consistency of the Shapley value, based on a characteristic function, which is …
Abstract
In the paper, cooperative repeated network games containing network formation stages are studied. After the first network formation stage, a particular player with a given probability may stop influencing other players by removing all her links and receiving zero payoffs. This effect is called “shock.” The effect of shock may appear only once, and the stage number, at which shock appears, is chosen at random. In the cooperative scenario of the game, subgame consistency of the Shapley value, based on a characteristic function, which is constructed in a special way, is investigated. To prevent players from breaking the cooperative agreement, a mechanism of stage payments—so-called imputation distribution procedure—is designed.
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