Extensions of solution concepts by means of multiplicative ε-tax games

Abstract

Multiplicative ε-tax games are introduced that are obtained from a game by imposing a tax on any proper coalition. The imposed tax is proportional to the relative reward to the coalition for its formation from the individuals. Of particular interest is the balanced (quasi-balanced, respectively) ε-tax game for which the imposed tax is minimal. This least balanced (quasi-balanced) ε-tax game is used to extend the concept of the core (τ-value). In a similar way the stable core of a game is introduced by considering the least convex ε-tax game. © 1986.