Tree-connected peer group situations and peer group games

Abstract.

A class of cooperative games arising from economic and operations research situations in which agents with potential individual possibilities are connected via a hierarchy within an organization is introduced. It is shown that the games in this class form a cone which lies in the intersection of convex games and monotonic veto-rich games with the leader of the organization as veto-player. Different economic situations like auctions, communication situations, sequencing situations and flow situations are related to peer group games. For peer group games classical solution concepts have nice computational properties.