A competitive partnership formation process
Tommy Andersson,
Jens Gudmundsson,
Adolphus Talman and
Zaifu Yang
Games and Economic Behavior, 2014, vol. 86, issue C, 165-177
Abstract:
A group of heterogeneous agents may form partnerships in pairs. All single agents as well as all partnerships generate values. If two agents choose to cooperate, they need to specify how to split their joint value among one another. In equilibrium, which may or may not exist, no agents have incentives to break up any existing partnerships or form new partnerships. This paper proposes a dynamic competitive adjustment process that always either finds an equilibrium or exclusively disproves the existence of any equilibrium in finitely many steps. When an equilibrium exists, partnership and revenue distribution will be automatically and endogenously determined by the process. Moreover, several fundamental properties of the equilibrium solution and the model are derived.
Keywords: Partnership formation; Adjustment process; Equilibrium; Assignment market (search for similar items in EconPapers)
JEL-codes: C62 C72 D02 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0899825614000530
Full text for ScienceDirect subscribers only
Related works:
Working Paper: A Competitive Partnership Formation Process (2013) 
Working Paper: A Competitive Partnership Formation Process (2013) 
Working Paper: A Competitive Partnership Formation Process (2013) 
Working Paper: A Competitive Partnership Formation Process (2013) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:86:y:2014:i:c:p:165-177
DOI: 10.1016/j.geb.2014.03.009
Access Statistics for this article
Games and Economic Behavior is currently edited by E. Kalai
More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Catherine Liu ().