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Solidarity to achieve stability

Author

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  • Alcalde-Unzu, Jorge
  • Gallo, Oihane
  • Inarra, Elena
  • Moreno-Ternero, Juan D.

Abstract

Agents may form coalitions. Each coalition shares its endowment among its agents by applying a sharing rule. The sharing rule induces a coalition formation problem by assuming that agents rank coalitions according to the allocation they obtain in the corresponding sharing problem. We characterize the sharing rules that induce a class of stable coalition formation problems as those that satisfy a natural axiom that formalizes the principle of solidarity. Thus, solidarity becomes a sufficient condition to achieve stability.

Suggested Citation

  • Alcalde-Unzu, Jorge & Gallo, Oihane & Inarra, Elena & Moreno-Ternero, Juan D., 2024. "Solidarity to achieve stability," European Journal of Operational Research, Elsevier, vol. 315(1), pages 368-377.
    • Handle: RePEc:eee:ejores:v:315:y:2024:i:1:p:368-377
    DOI: 10.1016/j.ejor.2023.11.034
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