How outside options are incorporated into payoff distributions

Takaaki Abe

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arXiv · 2609.00799

How outside options are incorporated into payoff distributions

Takaaki Abe

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Abstract

This paper examines how outside options are incorporated into payoff distributions in games with coalition structures. We introduce and characterize the alpha-value, which "fully" incorporates outside options, and provide a new characterization of the Aumann-Dreze value as an allocation rule that does not incorporate outside options. We show that the chi-value (Casajus, 2009) is a component-wise convex combination of these two values and thus incorporates outside options in a discounted form.

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Takaaki Abe. 2026-09-01. How outside options are incorporated into payoff distributions. https://arxiv.org/abs/2609.00799

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