Practical Application of Cooperative Solution Concepts for Distribution Problems: An Analysis of Selected Game Theoretic Solution Concepts from an Economic Point of View

摘要

Most scientific publications on the subject of cooperative solution concepts only analyze these concepts from a game theoretic point of view. Therefore, it is often disregarded whether the cooperative solution concepts can be put into economic practice. One example for a possible application of cooperative solution concepts in practice is the fair distribution of collectively earned profits in cooperations of legally independent corporations. This chapter intends to analyze whether cooperative solution concepts are able to solve this practical problem. In the first part of this chapter two cooperative solution concepts are compared from a game theoretic point of view. The first cooperative solution concept is the widely known Shapley value that can be described as a rather "classic" cooperative solution concept. The second one is a younger, more innovative solution concept called X-value. These two cooperative solution concepts are compared with regard to the conditions and assumptions they are based on and the characteristics of their resulting solutions, e.g. the stability of a solution. In the second part the two cooperative solution concepts are analyzed from an economic point of view. For this purpose, criteria for a successful use of game theoretic solution concepts applied on distribution problems in economic practice are introduced, e.g. information requirements. Special attention is put on the fairness aspect, as a solution concept can only be successfully used in practice if all business partners accept the solution as fair. Lastly, a practical example is used to illustrate the specific numerical application of the two solution concepts. The findings of this chapter are of threefold kind. First, the variety of solution concepts and their results is illustrated by the comparison of the Shapley value and the X-value. Secondly, with the help of the calculation example it is revealed which information requirements and which other criteria have to be fulfilled in order to use the presented solution concepts in practice. Thirdly, it is analyzed whether at least one of the solution concepts is more likely to be put successfully into practice than the other.