The Shapley value for directed graph (digraph) games, TU games with limited cooperation introduced by an arbitrary digraph prescribing the dominance relation among the players, is introduced. It is defined as the average of marginal contribution vectors corresponding to all permutations that do not violate the subordination of players. We assume that in order to cooperate players may join only coalitions containing no players dominating them. Properties of this solution are studied and a convexity type condition is provided that guarantees its stability with respect to an appropriately defined core concept. An axiomatization for cycle digraph games for which the digraphs are directed cycles is obtained.

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A Sophisticated Social Welfare Function (SSWF) is a mapping from pro…les of individual preferences into a sophisticated preference which is a pairwise weighted comparison of alternatives. We characterize Pareto optimal and pairwise independent SSWFs in terms of oligarchies that are induced by some power distribution in the society. This is a fairly large class ranging from dictatoriality to anonymous aggregation rules. Our results generalize the impossibility theorem of Arrow (1951) and the oligarchy theorem of Gibbard (1969).

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The Shapley value for directed graph (digraph) games, TU games with limited cooperation introduced by an arbitrary digraph prescribing the dominance relation among the players, is introduced. It is defined as the average of marginal contribution vectors corresponding to all permutations that do not violate the subordination of players. We assume that in order to cooperate players may join only coalitions containing no players dominating them. Properties of this solution are studied and a convexity type condition is provided that guarantees its stability with respect to an appropriately defined core concept. An axiomatization for cycle digraph games for which the digraphs are directed cycles is obtained.