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Barcelona GSE Working Paper No. 569

Title: Sharing the surplus in games with externalities within and across issues
Authors: Effrosyni Diamantoudi, Inés Macho-Stadler, David Pérez-Castrillo, Licun Xue
Date: 01-08-2011
Keywords: externalities, cooperative game theory, Shapley value, linked issues
JEL Codes: C71, D62
Abstract:
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 more general environment.
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