The ?-Core and Coalition Formation

Parkash Chander

No 2003.94, Working Papers from Fondazione Eni Enrico Mattei

Abstract: This paper reinterprets the ? -core (Chander and Tulkens (1995, 1997)) and justifies it as well as its prediction that the efficient coalition structure is stable in terms of the coalition formation theory. It is assumed that coalitions can freely merge or break apart, are farsighted (that is, it is the final and not the immediate payoffs that matter to the coalitions) and a coalition may deviate if and only if it stands to gain from it. It is then shown that subsequent to a deviation by a coalition, the nonmembers will have incentives to break apart into singletons, as is assumed in the definition of the ? - characteristic function, and that the grand coalition is the only stable coalition structure.

Keywords: Core; Characteristic function; Strategic games; Coalition formation (search for similar items in EconPapers)
JEL-codes: C71 C72 D62 (search for similar items in EconPapers)
Date: 2003-10
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2003.94

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