A Non-cooperative Foundation of Core-Stability in Positive Externality NTU-Coalition Games

Michael Finus () and Bianca Rundshagen ()

No 2003.31, Working Papers from Fondazione Eni Enrico Mattei

Abstract: We identify the core as an appealing stability concept of cooperative game theory, but argue that the non-cooperative approach has conceptual advantages in the context of economic problems with externalities. Therefore, we derive a non-cooperative foundation of core-stability for positive externality NTU-games. First, in the spirit of Hart/Kurz (1983), we develop a game that we call ?-game and show that strong Nash equilibria coalition structures in this game are identical to ?- and ?-core stable coalition structures. Second, as a by-product of the definition of the ?-game, we develop an extension called an ?-game. Finally, we compare equilibria in the ?- and ?-game with those in the ?- and ?-game of Hart and Kurz (1983).

Keywords: Core-stability; non-cooperative game theory; positive externality games (search for similar items in EconPapers)
JEL-codes: C72 (search for similar items in EconPapers)
Date: 2003-03
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2003.31

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