On the Computation of Stability in Multiple Coalition Formation Games
AbstractIn non-cooperative models of coalition formation, players have to decide whether or not to participate in a coalition (alliance). Game theoretic analyses of the formation of alliances in games with externalities, stress the difficulties in designing self-enforcing treaties because of free-riding. The presence of a strong free-rider incentive prevents most alliances of being stable and/or effective. This paper focuses on computing stability in a game on multiple coalition formation with membership rules and different transfer schemes. A new mathematical programming notation for game theory concepts is outlined. To compute stability, the new notation is used for implementation into computer coding. Implementation and computation aspects are discussed. Numerical illustration of the algorithm shows that stability varies with the applied membership rules and transfer schemes. An application of coalition formation to International Environmental Agreements (lEAs) is provided. Copyright Springer Science+Business Media, Inc. 2006
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Society for Computational Economics in its journal Computational Economics.
Volume (Year): 28 (2006)
Issue (Month): 3 (October)
Environment; Game theory; Coalition formation; Stability; Implementation;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bosello, Francesco & Buchner, Barbara & Carraro, Carlo & Raggi, Davide, 2003. "Can Equity Enhance Efficiency? Some Lessons from Climate Negotiations," CEPR Discussion Papers 3606, C.E.P.R. Discussion Papers.
- Finus, Michael & Sáiz, M. Elena & Hendrix, Eligius M.T., 2009. "An empirical test of new developments in coalition theory for the design of international environmental agreements," Environment and Development Economics, Cambridge University Press, vol. 14(01), pages 117-137, February.
- Weisbuch, Gerard & Alan Kirman & Dorothea K. Herreiner, 1996.
Discussion Paper Serie B
391, University of Bonn, Germany.
- Johan Eyckmans & Michael Finus, 2003.
"New Roads to International Environmental Agreements: The Case of Global Warming,"
Energy, Transport and Environment Working Papers Series
ete0318, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
- Michael Finus & Johan Eyckmans, 2003. "New Roads to International Environmental Agreements: The Case of Global Warming," Working Papers 2003.88, Fondazione Eni Enrico Mattei.
- Ray, D. & Vohra, R., 1996.
"A Theory of Endogenous Coalition Structure,"
68, Boston University - Industry Studies Programme.
- Thoron, S., 1999. "Market Organization: Noocooperative Models of Coalition Formation," G.R.E.Q.A.M. 99a30, Universite Aix-Marseille III.
- Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, vol. 20(2), pages 201-237, August.
- Michael Finus & Juan-Carlos Altamirano-Cabrera & Ekko Ierland, 2005. "The effect of membership rules and voting schemes on the success of international climate agreements," Public Choice, Springer, vol. 125(1), pages 95-127, July.
- Sang-Seung, Yi, 1996. "Endogenous formation of customs unions under imperfect competition: open regionalism is good," Journal of International Economics, Elsevier, vol. 41(1-2), pages 153-177, August.
- EYCKMANS, Johan & FINUS, Michael, 2003.
"Coalition formation in a global warming game : how the design of protocols affects the success of environmental treaty-making,"
CORE Discussion Papers
2003088, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Johan Eyckmans & Michael Finus, 2003. "Coalition Formation in a Global Warming Game: How the Design of Protocols Affects the Success of Environmental Treaty-Making," Energy, Transport and Environment Working Papers Series ete0317, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
- Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983.
"On the Stability of Collusive Price Leadership,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 16(1), pages 17-25, February.
- Juan-Carlos Altamirano-Cabrera & Michael Finus, 2006. "Permit trading and stability of international climate agreements," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 19-48, May.
- Ray, Debraj & Vohra, Rajiv, 1997.
"Equilibrium Binding Agreements,"
Journal of Economic Theory,
Elsevier, vol. 73(1), pages 30-78, March.
- Andrew Dowell & Michael Wooldridge & Peter McBurney, 2007. "The Computational Difficulty of Bribery in Qualitative Coalitional Games," Working Papers 2007.100, Fondazione Eni Enrico Mattei.
- Marta Biancardi & Giovanni Villani, 2010. "International Environmental Agreements with Asymmetric Countries," Computational Economics, Society for Computational Economics, vol. 36(1), pages 69-92, June.
- Marta Biancardi & Giovanni Villani, 2011. "Largest Consistent Set in International Environmental Agreements," Computational Economics, Society for Computational Economics, vol. 38(3), pages 407-423, October.
- Hans-Peter Weikard & Rob Dellink & Ekko Ierland, 2010. "Renegotiations in the Greenhouse," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(4), pages 573-596, April.
- Giovanni Villani & Marta Biancardi, 2011. "Largest Consistent Set in International Environmental Agreements," Quaderni DSEMS 04-2011, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.