Question
Hi! I have a question about coalitional games Take a market with one seller and four buyers. The seller owns one indivisible unit of an
Hi! I have a question about coalitional games
Take a market with one seller and four buyers. The seller owns one indivisible unit of an object, while each potential buyer has money. The seller values money, but not the object (meaning that the object has no value to the seller). The buyers each value their money and the object. Buyer i regards the object equivalent to vi units of money, and has enough money to afford the object. Let v1>v2>v3>v4>0, and all values are publicly known.
Each coalition may assign the good, and if it is owned by one of its members, to any of its members, and can allocate its members' money in any way it wishes among its members.
How can I represent the above situation as a coalitional game with transferrable utility? And then how would I find the core?
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