TY - GEN

T1 - Monotonicity in bargaining networks

AU - Azar, Yossi

AU - Devanur, Nikhil R.

AU - Jain, Kamal

AU - Rabani, Yuval

PY - 2010

Y1 - 2010

N2 - We study bargaining networks, discussed in a recent paper of Kleinberg and Tardos [KT08], from the perspective of cooperative game theory. In particular we examine three solution concepts, the nucleolus, the core center and the core median. All solution concepts define unique solutions, so they provide testable predictions. We define a new monotonicity property that is a natural axiom of any bargaining game solution, and we prove that all three of them satisfy this monotonicity property. This is actually in contrast to the conventional wisdom for general cooperative games that monotonicity and the core condition (which is a basic property that all three of them satisfy) are incompatible with each other. Our proofs are based on a primal-dual argument (for the nucleolus) and on the FKG inequality (for the core center and the core median). We further observe some qualitative differences between the solution concepts. In particular, there are cases where a strict version of our monotonicity property is a natural axiom, but only the core center and the core median satisfy it. On the other hand, the nucleolus is easy to compute, whereas computing the core center or the core median is #P-hard (yet it can be approximated in polynomial time).

AB - We study bargaining networks, discussed in a recent paper of Kleinberg and Tardos [KT08], from the perspective of cooperative game theory. In particular we examine three solution concepts, the nucleolus, the core center and the core median. All solution concepts define unique solutions, so they provide testable predictions. We define a new monotonicity property that is a natural axiom of any bargaining game solution, and we prove that all three of them satisfy this monotonicity property. This is actually in contrast to the conventional wisdom for general cooperative games that monotonicity and the core condition (which is a basic property that all three of them satisfy) are incompatible with each other. Our proofs are based on a primal-dual argument (for the nucleolus) and on the FKG inequality (for the core center and the core median). We further observe some qualitative differences between the solution concepts. In particular, there are cases where a strict version of our monotonicity property is a natural axiom, but only the core center and the core median satisfy it. On the other hand, the nucleolus is easy to compute, whereas computing the core center or the core median is #P-hard (yet it can be approximated in polynomial time).

UR - http://www.scopus.com/inward/record.url?scp=77951668912&partnerID=8YFLogxK

M3 - Conference contribution

AN - SCOPUS:77951668912

SN - 9780898717013

T3 - Proceedings of the Annual ACM-SIAM Symposium on Discrete Algorithms

SP - 817

EP - 826

BT - Proceedings of the 21st Annual ACM-SIAM Symposium on Discrete Algorithms

T2 - 21st Annual ACM-SIAM Symposium on Discrete Algorithms

Y2 - 17 January 2010 through 19 January 2010

ER -