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A One-Stage Model of Link Formation and Payoff Division

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  • Slikker, Marco
  • van den Nouweland, Anne

Abstract

In this paper we introduce a strategic form model in which cooperation structures and divisions of the payoffs are determined simultaneously. We analyze the cooperation structures and payoff divisions that result according to several equilibrium concepts. We find that essentially no cycles will result and that a player need not profit from a central position in a cooperation structure.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 34 (2001)
Issue (Month): 1 (January)
Pages: 153-175

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Handle: RePEc:eee:gamebe:v:34:y:2001:i:1:p:153-175

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Web page: http://www.elsevier.com/locate/inca/622836

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  1. Perry, Motty & Reny, Philip J, 1994. "A Noncooperative View of Coalition Formation and the Core," Econometrica, Econometric Society, vol. 62(4), pages 795-817, July.
  2. Dutta, B. & Nouweland, C.G.A.M. van den & Tijs, S.H., 1995. "Link formation in cooperative situations," Discussion Paper 1995-35, Tilburg University, Center for Economic Research.
  3. Chatterjee, Kalyan & Bhaskar Dutta & Debraj Ray & Kunal Sengupta, 1993. "A Noncooperative Theory of Coalitional Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 463-77, April.
  4. Gul, Faruk, 1989. "Bargaining Foundations of Shapley Value," Econometrica, Econometric Society, vol. 57(1), pages 81-95, January.
  5. Slikker, Marco & Dutta, Bhaskar & van den Nouweland, Anne & Tijs, Stef, 2000. "Potential maximizers and network formation," Mathematical Social Sciences, Elsevier, vol. 39(1), pages 55-70, January.
  6. Borm, P.E.M. & Tijs, S.H., 1992. "Strategic claim games corresponding to an NTU-game," Open Access publications from Tilburg University urn:nbn:nl:ui:12-154222, Tilburg University.
  7. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May.
  8. Roger B. Myerson, 1976. "Graphs and Cooperation in Games," Discussion Papers 246, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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