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A strategic implementation of the sequential equal surplus division rule for digraph cooperative games

We provide a strategic implementation of the sequential equal surplus division rule (Béal et al., 2014). Precisely, we design a non-cooperative mechanism of which the unique subgame perfect equilibrium payoffs correspond to the sequential equal surplus division outcome of a superadditive rooted tree TU-game. This mechanism borrowed from the bidding mechanism designed by Pérez-Castrillo and Wettstein (2001), but takes into account the direction of the edges connecting any two players in the rood tree, which reflects some dominance relation between them.
WP CRESE 2015-07
JEL : C71 ; C72
Bidding approach, Implementation, Rooted tree TU-games, Sequential equal surplus division