Ruhr Economic Papers

Ruhr Economic Papers #456

Efficient Formulas and Computational Efficiency for Glove Games

by Julia Belau

RGS, TU Dortmund, 12/2013, 10 S./p., 8 Euro, ISBN 78-3-86788-515-7 DOI: 10.4419/86788515

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Abstract

A well-known and simple game to model markets is the glove game where worth is produced by building matching pairs. For glove games, different concepts, like the Shapley value, the restricted Shapley value or the Owen value, yield different distributions of worth. Moreover, computational effort of these values is in general very high. This paper provides efficient allocation formulas of the component restricted Shapley value and the Owen value for glove games in case of efficient coalitions.

JEL-Classification: C71

Keywords: Glove game; imbalanced market; Shapley value; Owen value; efficiency; computational complexity

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