Discriminatory Von Neumann-Morgenstern Solutions
Abstract
**Please note that the full text is embargoed** ABSTRACT: The von Neumann-Morgenstern solution (vN-M solution) or stable
set is arguably the most dynamic and flexible solution concept
for cooperative games with side-payments. Perhaps the most
striking phenomenon is that vN-M solutions often suggest
intricate coalition formation processes and corresponding
payoffs. Why this occurs is not well understood. On the other
hand, vN-M solutions are difficult to find. This paper deals
with the class of discriminatory vN-M solutions and presents
results that give insights in the corresponding coalition
formation process. A computationally effective procedure is
presented to answer the decision problem whether or not a
proposed set of imputations to a given game is a discriminatory
vN-M solution.