open access publication

Article, 2023

Minimal balanced collections and their application to core stability and other topics of game theory

Discrete Applied Mathematics, ISSN 0166-218X, 1872-6771, Volume 341, Pages 60-81, 10.1016/j.dam.2023.07.025

Contributors

Mermoud, Dylan Laplace (Corresponding author) [1] Grabisch, Michel [2] Sudhölter, Peter 0000-0002-9928-6672 [3]

Affiliations

  1. [1] Centre d'Économie de la Sorbonne
  2. [NORA names: France; Europe, EU; OECD];
  3. [2] Paris School of Economics, Université Paris 1 Panthéon-Sorbonne, France
  4. [NORA names: France; Europe, EU; OECD];
  5. [3] University of Southern Denmark
  6. [NORA names: SDU University of Southern Denmark; University; Denmark; Europe, EU; Nordic; OECD]

Abstract

Minimal balanced collections are a generalization of partitions of a finite set of n elements and have important applications in cooperative game theory and discrete mathematics. However, their number is not known beyond n = 4 . In this paper we investigate the problem of generating minimal balanced collections and implement the Peleg algorithm, permitting to generate all minimal balanced collections till n = 7 . Secondly, we provide practical algorithms to check many properties of coalitions and games, based on minimal balanced collections, in a way which is faster than linear programming-based methods. In particular, we construct an algorithm to check if the core of a cooperative game is a stable set in the sense of von Neumann and Morgenstern. The algorithm implements a theorem according to which the core is a stable set if and only if a certain nested balancedness condition is valid. The second level of this condition requires generalizing the notion of balanced collection to balanced sets.

Keywords

Morgenstern, Peleg, algorithm, applications, balanced collections, balanced sets, balancedness condition, coalition, collection, conditions, cooperative game theory, core, core stability, discrete mathematics, elements, finite set, game, game theory, generalization, generalization of partitions, levels, linear programming-based method, mathematics, method, partitioning, problem, properties, sets, stability, theorem, theory, topics, topics of game theory

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