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Discounted Tree Solutions

This article introduces a discount parameter and a weight function in Myerson’s (1977) classical model of cooperative games with restrictions on cooperation. The discount parameter aims to reflect the time preference of the agents while the weight function aims to reflect the importance of each node of a graph. We provide axiomatic characterizations of two types of solution that are inspired by the hierarchical outcomes (Demange, 2004).
WP CRESE 2015-18
Graph games, Discount parameter, Weight function, Discounted tree solutions, Invariance with respect to cone amalgamation, Generalized standardness