This post is super useful, thankyou for writing it!
One thing I’m unclear on: does the transferrable utility assumption require that utility be linear with respect to money (or money-analogue)? It seems like we need that in order to split the game into a sum of two games in the CoCo derivation, but it makes the argument a lot weaker once we introduce uncertainty.
Yeah, “transferrable utility games” are those where there is a resource, and the utilities of all players are linear in that resource (in order to redenominate everyone’s utilities as being denominated in that resource modulo a shift factor). I believe the post mentioned this.
This post is super useful, thankyou for writing it!
One thing I’m unclear on: does the transferrable utility assumption require that utility be linear with respect to money (or money-analogue)? It seems like we need that in order to split the game into a sum of two games in the CoCo derivation, but it makes the argument a lot weaker once we introduce uncertainty.
Yeah, “transferrable utility games” are those where there is a resource, and the utilities of all players are linear in that resource (in order to redenominate everyone’s utilities as being denominated in that resource modulo a shift factor). I believe the post mentioned this.