The positive core for games with precedence constraints
Working paper
Issue number:
2014.36
Series:
CES Working Papers
Publisher:
Centre d’Economie de la Sorbonne
Year:
2014
We generalize the characterizations of the positive core and the positive prekernel to TU games
with precedence constraints and show that the positive core is characterized by non-emptiness (NE),
boundedness (BOUND), covariance under strategic equivalence, closedness (CLOS), the reduced game
property (RGP), the reconfirmation property (RCP) for suitably generalized Davis-Maschler reduced
games, and the possibility of nondiscrimination. The bounded positive core, i.e., the union of all
bounded faces of the positive core, is characterized similarly. Just RCP has to be replaced by a
suitable weaker axiom, a weak version of CRGP (the converse RGP) has to be added, and CLOS
can be deleted. For classical games the prenucleolus is the unique further solution that satisfies the
axioms, but for games with precedence constraints it violates NE as well as the prekernel. The positive
prekernel, however, is axiomatized by NE, anonymity, reasonableness, the weak RGP, CRGP, and
weak unanimity for two-person games (WUTPG), and the bounded positive prekernel is axiomatized
similarly by requiring WUTPG only for classical two-person games and adding BOUND.