# Values for Environments with Externalities - The Average Approach

Working paper

Issue number:

919.2016

Series:

Barcelona GSE Working Paper

Publisher:

Barcelona Graduate School of Economics

Year:

2016

We propose the average approach,where the worth of a coalition is a weighted average of its worth for different partitions of the playersset, as a unifying method to extend values for characteristic function form games. Our method allows us to extend the equal division value, the equal surplus value, the consensus value, the -egalitarian Shapley value, and the least-square family. For each of the rst three extensions, we also provide an axiomatic characterization of a particular value for partition function form games. And for each of the last two extensions, we find a family of values that satisfy the properties.