An algorithm for computing the nucleolus of disjunctive games with an acyclic permission structure

A cooperative game with a permission structure describes a situation in which players in a cooperative TU-game are hierarchically ordered in the sense that there are players that need permission from other players before they are allowed to cooperate. In this paper we consider non-negative additive games with an acyclic permission structure. For such a game we provide a polynomial time algorithm for computing the nucleolus of the induced restricted game. The algorithm is applied to a market situation where sellers can sell objects to buyers through a directed network of intermediaries. © 2010 Elsevier B.V. All rights reserved.