Chakrabarti, Subhadip and Ghintran, Amandine (2013): Assignment of Heterogeneous Agents in Trees under the Permission Value.
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Abstract
We investigate assignment of heterogeneous agents in trees where the allocation rule is given by the permission value. We focus on efficient hierarchies,namely those, for which the payoff of the top agent is maximized. For additive games, such hierarchies are always cogent, namely, more productive agents occupy higher positions. The result can be extended to non-additive games with appropriate restrictions on the value function. Finally, we consider auctions where agents bid for positions in a two agent vertical hierarchy. Under simultaneous bidding, an equilibrium does not exist while sequential bidding always results in a non-cogent hierarchy.
Item Type: | MPRA Paper |
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Original Title: | Assignment of Heterogeneous Agents in Trees under the Permission Value |
Language: | English |
Keywords: | permission value, hierarchies |
Subjects: | C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C71 - Cooperative Games C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games |
Item ID: | 49115 |
Depositing User: | Subhadip Chakrabarti |
Date Deposited: | 18 Aug 2013 13:10 |
Last Modified: | 30 Sep 2019 18:52 |
References: | [1] Brink, R. van den and R.P. Gilles (1996) “Axiomatizations of the Conjunctive Permission Value”, Games and Economic Behavior, 12, 113-126. [2] Coase, Ronald.H. (1937), “The Nature of the Firm”, Economica,4,386-405. [3] Gilles, Robert.P.and Guillermo Owen (1999), “Cooperative Games and Disjunctive Permission Structures” Center for Economic Research Discussion Paper 1999-20, Tilburg University. [4] Gilles, Robert.P., Guillermo. Owen and Rene. van den Brink (1992) “Games with Permission Structures: The Conjunctive Approach”, International Journal of Game Theory, 20 , 277-293. [5] Lazear, Edward P. and Sherwin Rosen (1981) “Rank-Order Tournaments as Optimum Labor Contracts”, Journal of Political Economy, 89, 841-864. [6] Myerson, Roger B. (1977) “Graphs and Cooperation in Games”, Mathematics of Operations Research, 9, 169-182. [7] Rajan, Raghuram G. and Luigi Zingales (2001) “The Firm as a Dedicated Hierarchy”, Quarterly Journal of Economics, 116, 805-851. [8] Ruys, P.H.M and R. van den Brink “Positional Abilities and Rents on Equilibrium Wages and Profits” in The Theory of Markets ed. P.J.J. Herrings, G. van der Laan and A.J.J. Talman, North Holland, 261-269. [9] Stole, Lars A. and Jeffrey Zweibel (1996); “Organizational Design and Technology Choice under Intrafirm Bargaining”,American Economic Review, 86 ,195-222. [10] Williamson, Oliver E. (1967) “Hierarchical Control and Optimum Firm Size”, Journal of Political Economy, 75, 123-128. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/49115 |
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