Three-Person Cooperative Game and its Application in Decision Making Process of Hierarchical Organizations

Abiy, Dejenee (2007) Three-Person Cooperative Game and its Application in Decision Making Process of Hierarchical Organizations. Masters thesis, Addis Ababa University.

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Abstract

The solution of an n-level linear problem, when the levels make decisions sequentially and independently, is not necessarily pareto-optimal, i.e.there exist feasible points which ofier increased payofis to some levels without diminishing the payofis to other levels. These increased payofis may be obtained if the levels coalesce. In particular if the number of decision makers on each level form coalition to work cooperatively they can get a better payofi. A game theoretic methodology for predicting coalition formation in the decision makers on each level is presented. The problem is modeled as an abstract game. If a core exists for the characteristic function game, then there exists a set of enforceable points which ofier the increased payofis available to the system, but a core may not exist. When the core exist, for games with non-empty cores, it would be an advantageous property for a power index to assign values to the players that comprise a solution in the core. We use Shapley value, as a solution concept, which has got a drawback that it might not always been an element of the core. So we take the Willick’s power index as a best solution concept, which has got a better relation with the core than Shapley. The n-level Stackleberg problem, which represent a class of n-level linear problem, as a special case the 3-level Stackleberg problem, is deflned. In the university budget allocation system coalition among decision makers in each level, science faculty, is used to demonstrate the suggested methodology.

Item Type:	Thesis (Masters)
Subjects:	H Social Sciences > HG Finance Q Science > Q Science (General) Q Science > QA Mathematics
Divisions:	Africana
Depositing User:	Selom Ghislain
Date Deposited:	18 Jun 2018 11:42
Last Modified:	18 Jun 2018 11:42
URI:	http://thesisbank.jhia.ac.ke/id/eprint/4316

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