Formation of coalition structures as a non-cooperative game

Dmitry Levando ()
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Dmitry Levando: National Research University Higher School of Economics

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: The paper defines a family of nested non-cooperative simultaneous finite games to study coalition structure formation with intra and inter-coalition externalities. Every game has two outcomes - an allocation of players over coalitions and a payoff profile for every player. Every game in the family has an equilibrium in mixed strategies. The equilibrium can generate more than one coalition with a presence of intra and inter group externalities. These properties make it different from the Shapley value, strong Nash, coalition-proof equilibrium, core, kernel, nucleolus. The paper demonstrates some applications: non-cooperative cooperation, Bayesian game, stochastic games and construction of a non-cooperative criterion of coalition structure stability for studying focal points. An example demonstrates that a payoff profile in the Prisoners' Dilemma is non-informative to deduce a cooperation of players

Keywords: Non-cooperative; Games (search for similar items in EconPapers)
JEL-codes: C71 C72 C73 (search for similar items in EconPapers)
Date: 2017-02
New Economics Papers: this item is included in nep-cdm, nep-exp, nep-gth and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:17015

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