The component-wise egalitarian Myerson value for Network Games

Abstract

We introduce the component-wise egalitarian Myerson value for network games. This new value being a convex combination of the Myerson value and the component-wise equal division rule is a playerbased allocation rule. In network games under the cooperative framework, the Myerson value is an extreme example of marginalism, while the equal division rule signifies egalitarianism. In the proposed component-wise egalitarian Myerson value, a convexity parameter combines these two attributes and determines the degree of solidarity to the players. Here, by solidarity, we mean the mutual support or compensation among the players in a network. We provide three axiomatic characterizations of the value. Further, we propose an implementation mechanism for the component-wise egalitarian Myerson value under subgame perfect Nash equilibrium.