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Subgame Perfect Coalition Formation

Author

Listed:
  • Greg Leo

    (Vanderbilt University)

  • Yevgeniy Vorobeychik

    (Washington University)

  • Myrna Wooders

    (Vanderbilt University)

Abstract

We analyze a dynamic game where players can each make offers to other players to form coalitions. We show that these games have a unique subgame perfect equilibrium outcome that is individually rational and, when players can make enough proposals, Pareto optimal. We also provide sufficient conditions for equilibrium to implement core coalition structures.

Suggested Citation

  • Greg Leo & Yevgeniy Vorobeychik & Myrna Wooders, 2023. "Subgame Perfect Coalition Formation," Dynamic Games and Applications, Springer, vol. 13(2), pages 510-524, June.
    • Handle: RePEc:spr:dyngam:v:13:y:2023:i:2:d:10.1007_s13235-022-00467-7
    DOI: 10.1007/s13235-022-00467-7
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    References listed on IDEAS

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    More about this item

    Keywords

    Coalition formation; Sequential proposer game; Mechanism design; Subgame perfection; Pareto optimality;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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