"Deals with real life situations where objectives of the participants are partially cooperative and partially conflicting"--

This book systematically presents the main solutions of cooperative games: the core, bargaining set, kernel, nucleolus, and the Shapley value of TU games as well as the core, the Shapley value, and the ordinal bargaining set of NTU games. The authors devote a separate chapter to each solution, wherein they study its properties in full detail. In addition, important variants are defined or even intensively analyzed.

Cooperative game theory is a booming research area with many new developments in the last few years. So, our main purpose when prep- ing the second edition was to incorporate as much of these new dev- opments as possible without changing the structure of the book. First, this o?ered us the opportunity to enhance and expand the treatment of traditional cooperative games, called here crisp games, and, especially, that of multi-choice games, in the idea to make the three parts of the monograph more balanced. Second, we have used the opportunity of a secondeditiontoupdateandenlargethelistofreferencesregardingthe threemodels of cooperative games. Finally, we have bene?ted fromthis opportunity by removing typos and a few less important results from the ?rst edition of the book, and by slightly polishing the English style and the punctuation, for the sake of consistency along the monograph. The main changes are: (1) Chapter 3 contains an additional section, Section 3. 3, on the - erage lexicographic value, which is a recent one-point solution concept de?ned on the class of balanced crisp games. (2) Chapter 4 is new. It o?ers a brief overview on solution c- cepts for crisp games from the point of view of egalitarian criteria, and presents in Section 4. 2 a recent set-valued solution concept based on egalitarian considerations, namely the equal split-o? set. (3)Chapter5isbasicallyanenlargedversionofChapter4ofthe?rst edition because Section 5. 4 dealing with the relation between convex games and clan games with crisp coalitions is new.

The book brings together an overview of standard concepts in cooperative game theory with applications to the analysis of social networks and hierarchical authority organizations. The standard concepts covered include the multi-linear extension, the Core, the Shapley value, and the cooperative potential. Also discussed are the Core for a restricted collection of formable coalitions, various Core covers, the Myerson value, value-based potentials, and share potentials. Within the context of social networks this book discusses the measurement of centrality and power as well as allocation rules such as the Myerson value and hierarchical allocation rules. For hierarchical organizations, two basic approaches to the exercise of authority are explored; for each approach the allocation of the generated output is developed. Each chapter is accompanied by a problem section, allowing this book to be used as a textbook for an advanced graduate course on game theory.

In this book applications of cooperative game theory that arise from combinatorial optimization problems are described. It is well known that the mathematical modeling of various real-world decision-making situations gives rise to combinatorial optimization problems. For situations where more than one decision-maker is involved classical combinatorial optimization theory does not suffice and it is here that cooperative game theory can make an important contribution. If a group of decision-makers decide to undertake a project together in order to increase the total revenue or decrease the total costs, they face two problems. The first one is how to execute the project in an optimal way so as to increase revenue. The second one is how to divide the revenue attained among the participants. It is with this second problem that cooperative game theory can help. The solution concepts from cooperative game theory can be applied to arrive at revenue allocation schemes. In this book the type of problems described above are examined. Although the choice of topics is application-driven, it also discusses theoretical questions that arise from the situations that are studied. For all the games described attention will be paid to the appropriateness of several game-theoretic solution concepts in the particular contexts that are considered. The computation complexity of the game-theoretic solution concepts in the situation at hand will also be considered.

Noncooperative Game Theory is aimed at students interested in using game theory as a design methodology for solving problems in engineering and computer science. João Hespanha shows that such design challenges can be analyzed through game theoretical perspectives that help to pinpoint each problem's essence: Who are the players? What are their goals? Will the solution to "the game" solve the original design problem? Using the fundamentals of game theory, Hespanha explores these issues and more. The use of game theory in technology design is a recent development arising from the intrinsic limitations of classical optimization-based designs. In optimization, one attempts to find values for parameters that minimize suitably defined criteria—such as monetary cost, energy consumption, or heat generated. However, in most engineering applications, there is always some uncertainty as to how the selected parameters will affect the final objective. Through a sequential and easy-to-understand discussion, Hespanha examines how to make sure that the selection leads to acceptable performance, even in the presence of uncertainty—the unforgiving variable that can wreck engineering designs. Hespanha looks at such standard topics as zero-sum, non-zero-sum, and dynamics games and includes a MATLAB guide to coding. Noncooperative Game Theory offers students a fresh way of approaching engineering and computer science applications. An introduction to game theory applications for students of engineering and computer science Materials presented sequentially and in an easy-to-understand fashion Topics explore zero-sum, non-zero-sum, and dynamics games MATLAB commands are included

Groups of people perform acts that are subject to standards of rationality. A committee may sensibly award fellowships, or may irrationally award them in violation of its own policies. A theory of collective rationality defines collective acts that are evaluable for rationality and formulates principles for their evaluation. This book argues that a group's act is evaluable for rationality if it is the products of acts its members fully control. It also argues that such an act is collectively rational if the acts of the group's members are rational. Efficiency is a goal of collective rationality, but not a requirement, except in cases where conditions are ideal for joint action and agents have rationally prepared for joint action. The people engaged in a game of strategy form a group, and the combination of their acts yields a collective act. If their collective act is rational, it constitutes a solution to their game. A theory of collective rationality yields principles concerning solutions to games. One principle requires that a solution constitute an equilibrium among the incentives of the agents in the game. In a cooperative game some agents are coalitions of individuals, and it may be impossible for all agents to pursue all incentives. Because rationality is attainable, the appropriate equilibrium standard for cooperative games requires that agents pursue only incentives that provide sufficient reasons to act. The book's theory of collective rationality supports an attainable equilibrium-standard for solutions to cooperative games and shows that its realization follows from individuals' rational acts. By extending the theory of rationality to groups, this book reveals the characteristics that make an act evaluable for rationality and the way rationality's evaluation of an act responds to the type of control its agent exercises over the act. The book's theory of collective rationality contributes to philosophical projects such as contractarian ethics and to practical projects such as the design of social institutions.