On proportional allocation in hedonic games

Martin Hoefer, Wanchote Jiamjitrak*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

4 Citations (Scopus)


Proportional allocation is an intuitive and widely applied mechanism to allocate divisible resources. We study proportional allocation for profit sharing in coalition formation games. Here each agent has an impact or reputation value, and each coalition represents a joint project that generates a total profit. This profit is divided among the agents involved in the project based on their reputation. We study existence, computational complexity, and social welfare of core-stable states with proportional sharing. Core-stable states always exist and can be computed in time O(m log m), where m is the total number of projects. Moreover, when profits have a natural monotonicity property, there exists a reputation scheme such that the price of anarchy is 1, i.e., every core-stable state is a social optimum. However, these schemes exhibit a strong inequality in reputation of agents and thus imply a lacking fairness condition. Our main results show a tradeoff between reputation imbalance and the price of anarchy. Moreover, we show lower bounds and computational hardness results on the reputation imbalance when prices of anarchy and stability are small.

Original languageEnglish
Title of host publicationAlgorithmic Game Theory - 10th International Symposium, SAGT 2017, Proceedings
Number of pages13
Publication statusPublished - 2017
MoE publication typeA4 Article in a conference publication
EventInternational Symposium on Algorithmic Game Theory - L’Aquila, Italy
Duration: 12 Sep 201714 Sep 2017
Conference number: 10

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume10504 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349


ConferenceInternational Symposium on Algorithmic Game Theory
Abbreviated titleSAGT

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