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Cooperation with Externalities and Uncertainty

Habis, Helga LU and Csercsik, Dávid (2012)
Abstract
We introduce a new class of cooperative games where the worth of a coalition depends on the behavior of other players and on the state of nature as well. We allow for coalitions to form both before and after the resolution of uncertainty, hence agreements must be stable against both types of deviations. The appropriate extension of the classical core concept, the Sustainable Core, is defined for this new setup to test the stability of allocations in such a complex environment. A prominent application, a game of consumers and generators on an electrical energy transmission network is examined in details, where the power in- and outlets of the nodes have to be determined in a way, that if any line instantaneously fails, none of the remaining... (More)
We introduce a new class of cooperative games where the worth of a coalition depends on the behavior of other players and on the state of nature as well. We allow for coalitions to form both before and after the resolution of uncertainty, hence agreements must be stable against both types of deviations. The appropriate extension of the classical core concept, the Sustainable Core, is defined for this new setup to test the stability of allocations in such a complex environment. A prominent application, a game of consumers and generators on an electrical energy transmission network is examined in details, where the power in- and outlets of the nodes have to be determined in a way, that if any line instantaneously fails, none of the remaining lines may be overloaded. We show that fulfilling this safety requirement in a mutually acceptable way can be achieved by choosing an element in the Sustainable Core. (Less)
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author
organization
publishing date
type
Working Paper
publication status
submitted
subject
keywords
partition function form games uncertainty core sustainability
language
English
LU publication?
yes
id
3e2cbb93-9fcd-4143-a162-bcf94b45f158 (old id 3224654)
date added to LUP
2012-12-06 08:10:21
date last changed
2016-08-24 15:43:09
@misc{3e2cbb93-9fcd-4143-a162-bcf94b45f158,
  abstract     = {We introduce a new class of cooperative games where the worth of a coalition depends on the behavior of other players and on the state of nature as well. We allow for coalitions to form both before and after the resolution of uncertainty, hence agreements must be stable against both types of deviations. The appropriate extension of the classical core concept, the Sustainable Core, is defined for this new setup to test the stability of allocations in such a complex environment. A prominent application, a game of consumers and generators on an electrical energy transmission network is examined in details, where the power in- and outlets of the nodes have to be determined in a way, that if any line instantaneously fails, none of the remaining lines may be overloaded. We show that fulfilling this safety requirement in a mutually acceptable way can be achieved by choosing an element in the Sustainable Core.},
  author       = {Habis, Helga and Csercsik, Dávid},
  keyword      = {partition function form games uncertainty core sustainability},
  language     = {eng},
  title        = {Cooperation with Externalities and Uncertainty},
  year         = {2012},
}