 The Core of Aggregative Cooperative Games with ExternalitiesThe B.E. Journal of Theoretical Economics, 2016, vol. 16, issue 1, 389-410 Abstract: This paper analyzes cooperative games with externalities generated by aggregative normal form games. We construct the characteristic function of a coalition S for various coalition formation rules and we examine the corresponding cores. We first show that the γ$$\gamma $$-core is non-empty provided each player’s payoff decreases in the sum of all players’ strategies. We generalize this result by showing that if S believes that the outside players form at least l(s)=n−s−(s−1)$$l(s) = n - s - (s - 1)$$ coalitions, then S has no incentive to deviate from the grand coalition and the corresponding core is non-empty (where n is the number of players in the game and s the number of members of S). We finally consider the class of linear aggregative games (Martimort and Stole 2010). In this case, if S believes that the outsiders form at least lˆ(s)=ns−1$$\widehat l(s) = {n \over s} - 1$$ coalitions [where lˆ(s)≤l(s)$$\widehat l(s) \le l(s)$$] a core non-emptiness result holds again. Keywords: aggregative game; cooperative game; externalities; core (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejtec:v:16:y:2016:i:1:p:389-410:n:5 Ordering information: This journal article can be ordered from Access Statistics for this article The B.E. Journal of Theoretical Economics is currently edited by Burkhard C. Schipper More articles in The B.E. Journal of Theoretical Economics from De Gruyter |
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