Event Details

Title: Equity Equilibrium for Cooperative Games

Abstract:

We introduce a unifying stability concept to coalitional form cooperative games - the equity equilibrium. A central authority selects an outcome of the game to enforce and evaluates its stability using a collection of functions we call a "complaint system." Complaints are used to identify grievances against as well as concessions to each player. An equity equilibrium is an individually rational payoff configuration which balances the grievances and concessions of each player. We establish existence of equity equilibrium for any valid complaint system and under any coalition structure. Next, we show the equity equilibrium characterizes the kernel, the Shapley value, and the Generalized Nash Bargaining Solution of a cooperative game under specific complaint systems. Finally, we show how simplicial algorithms can be employed for computing any type of equity equilibrium and illustrate with an example from the Tennessee Valley Authority.