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Two variations of the Public Good Index for games with a priori unions

Alonso-Meijide J. M., Casas-Mendez B., Fiestras-Janeiro G., Holler M. J.

Control and Cybernetics

2010

Vol. 39, no 3

839-855

This paper introduces two variations of the Public Good Index (Holler, 1982) for games with a priori unions. The first one stresses the public good property which suggests that all members of a winning coalition derive equal power. The second variation follows earlier work on the integration of a priori unions (Owen, 1977 and 1982) and refers to essential subsets of an a priori union when allocating power shares. Axiomatic characterizations of both indices are discussed. Numerical examples, one of them taken from a political setting, illustrate the new power indices presented in this paper.