A key question in cooperative game theory is that of coalitional stability, usually captured by the notion of the --the set of outcomes such that no subgroup of players has an incentive to deviate. However, some coalitional games have empty cores, and any outcome in such a game is unstable. In this paper, we investigate the possibility of stabilizing a coalitional game by using external payments. We consider a scenario where an external party, which is interested in having the players work together, offers a supplemental payment to the grand coalition (or, more generally, a particular coalition structure). This payment is conditional on players not deviating from their coalition(s). The sum of this payment plus the actual gains of the coalition(s) may then be divided among the agents so as to promote stability. We define the as the minimal external payment that stabilizes the game. We provide general bounds on the cost of stability in several classes of games, and explore its algorithmic properties. To develop a better intuition for the concepts we introduce, we provide a detailed algorithmic study of the cost of stability in weighted voting games, a simple but expressive class of games which can model decision-making in political bodies, and cooperation in multiagent settings. Finally, we extend our model and results to games with coalition structures.
The complexity of various solution concepts in coalitional games is a well-studied topic @cite_15 @cite_9 @cite_10 @cite_18 . In particular, @cite_0 analyzes some important computational aspects of stability in WVGs, proving a number of results on the complexity of the least core and the nucleolus. The complexity of the CS-core in WVGs is studied in @cite_13 . Paper @cite_12 is similar to ours in spirit. It considers the setting where an external party intervenes in order to achieve a certain outcome using monetary payments. However, @cite_12 deals with the very different domain of cooperative games. There are also similarities between our work and the recent research on bribery in elections @cite_16 , where an external party pays voters to change their preferences in order to make a given candidate win. A companion paper @cite_3 studies the cost of stability in network flow games.
@cite_13 @cite_18 @cite_9 @cite_3 @cite_0 @cite_15 @cite_16 @cite_10 @cite_12
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Simple coalitional games are a fundamental class of cooperative games and voting games which are used to model coalition formation, resource allocation and decision making in computer science, artificial intelligence and multiagent systems. Although simple coalitional games are well studied in the domain of game theory and social choice, their algorithmic and computational complexity aspects have received less attention till recently. The computational aspects of simple coalitional games are of increased importance as these games are used by computer scientists to model distributed settings. This thesis fits in the wider setting of the interplay between economics and computer science which has led to the development of algorithmic game theory and computational social choice. A unified view of the computational aspects of simple coalitional games is presented here for the first time. Certain complexity results also apply to other coalitional games such as skill games and matching games. The following issues are given special consideration: influence of players, limit and complexity of manipulations in the coalitional games and complexity of resource allocation on networks. The complexity of comparison of influence between players in simple games is characterized. The simple games considered are represented by winning coalitions, minimal winning coalitions, weighted voting games or multiple weighted voting games. A comprehensive classification of weighted voting games which can be solved in polynomial time is presented. An efficient algorithm which uses generating functions and interpolation to compute an integer weight vector for target power indices is proposed. Voting theory, especially the Penrose Square Root Law, is used to investigate the fairness of a real life voting model. Computational complexity of manipulation in social choice protocols can determine whether manipulation is computationally feasible or not. The computational complexity and bounds of manipulation are considered from various angles including control, false-name manipulation and bribery. Moreover, the computational complexity of computing various cooperative game solutions of simple games in dierent representations is studied. Certain structural results regarding least core payos extend to the general monotone cooperative game. The thesis also studies a coalitional game called the spanning connectivity game. It is proved that whereas computing the Banzhaf values and Shapley-Shubik indices of such games is #P-complete, there is a polynomial time combinatorial algorithm to compute the nucleolus. The results have interesting significance for optimal strategies for the wiretapping game which is a noncooperative game defined on a network. One key question in cooperative game theory is that of coalitional stability. A coalition in such games is stable when no subset of the agents in it has a rational incentive to leave the coalition. Finding a division of the gains of the coalition (an imputation) lies at the heart of many cooperative game theory solution concepts, the most prominent of which is the core. However, some coalitional games have empty cores, and any imputation in such a game is unstable. We investigate the possibility of stabilizing the coalitional structure using external payments. In this case, a supplemental payment is offered to the grand coalition by an external party which is interested in having the members of the coalition work together. The sum of this payment plus the gains of the coalition, called the coalition's "adjusted gains", may be divided among the members of the coalition in a stable manner. We call a division of the adjusted gains a super-imputation, and define the cost of stability (CoS) as the minimal sum of payments that stabilizes the coalition. We examine the cost of stability in weighted voting games, where each agent has a weight, and a coalition is successful if the sum of its weights exceeds a given threshold. Such games offer a simple model of decision making in political bodies, and of cooperation in multiagent settings. We show that it is coNP-complete to test whether a super-imputation is stable, but show that if either the weights or payments of agents are bounded then there exists a polynomial algorithm for this problem. We provide a polynomial approximation algorithm for computing the cost of stability. We consider computational aspects of a game theoretic approach to network reliability. Consider a network where failure of one node may disrupt communication between two other nodes. We model this network as a simple coalitional game, called the vertex Connectivity Game (CG). In this game, each agent owns a vertex, and controls all the edges going to and from that vertex. A coalition of agents wins if it fully connects a certain subset of vertices in the graph, called the primary vertices. We show that power indices, which express an agent's ability to affect the outcome of the vertex connectivity game, can be used to identify significant possible points of failure in the communication network, and can thus be used to increase network reliability. We show that in general graphs, calculating the Banzhaf power index is #P-complete, but suggest a polynomial algorithm for calculating this index in trees. We also show a polynomial algorithm for computing the core of a CG, which allows a stable division of payments to coalition agents. A key question in cooperative game theory is that of coalitional stability, usually captured by the notion of the core --the set of outcomes such that no subgroup of players has an incentive to deviate. However, some coalitional games have empty cores, and any outcome in such a game is unstable. In this paper, we investigate the possibility of stabilizing a coalitional game by using external payments. We consider a scenario where an external party, which is interested in having the players work together, offers a supplemental payment to the grand coalition (or, more generally, a particular coalition structure). This payment is conditional on players not deviating from their coalition(s). The sum of this payment plus the actual gains of the coalition(s) may then be divided among the agents so as to promote stability. We define the cost of stability (CoS) as the minimal external payment that stabilizes the game. We provide general bounds on the cost of stability in several classes of games, and explore its algorithmic properties. To develop a better intuition for the concepts we introduce, we provide a detailed algorithmic study of the cost of stability in weighted voting games, a simple but expressive class of games which can model decision-making in political bodies, and cooperation in multiagent settings. Finally, we extend our model and results to games with coalition structures.