Weighted Average-convexity and Cooperative Games

Abstract

We generalize the notion of convexity and average-convexity to the notion of weighted average-convexity. We show several results on the relation between weighted average-convexity and cooperative games. First, we prove that if a game is weighted average-convex, then the corresponding weighted Shapley value is in the core. Second, we exhibit necessary conditions for a communication TU-game to preserve the weighted average-convexity. Finally, we provide a complete characterization when the underlying graph is a priority decreasing tree.