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Strategy-proof coalition formation

Carmelo Rodríguez Álvarez
Authors registered in the RePEc Author Service: Carmelo Rodriguez-Alvarez ()

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: We analyze coalition formation problems in which a group of agents is partitioned into coalitions and agents' preferences only depend on the coalition they belong to. We study rules that associate to each profile of agents' preferences a partition of the society. We focus on strategyproof rules on restricted domains of preferences, as the domains of additively representable or separable preferences. In such domains, only single-lapping rules satisfy strategy-proofness, individual rationality, non-bossiness, and flexibility. Single-lapping rules are characterized by severe restrictions on the set of feasible coalitions. These restrictions are consistent with hierarchical organizations and imply that single-lapping rules always select core-stable partitions. Thus, our results highlight the relation between the non-cooperative concept of strategy-proofness and the cooperative concept of core-stability. We analyze the implications of our results for matching problems

Date: 2005-09
New Economics Papers: this item is included in nep-gth
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Journal Article: Strategy-proof coalition formation (2009) Downloads
Working Paper: Strategy-Proof Coalition Formation (2006) Downloads
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