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Coalition Formation and Stability

Author

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  • Antonio Magaña

    (Universitat Politècnica de Catalunya (UPC))

  • Francesc Carreras

    (Universitat Politècnica de Catalunya (UPC))

Abstract

This paper aims to develop, for any cooperative game, a solution notion that enjoys stability and consists of a coalition structure and an associated payoff vector derived from the Shapley value. To this end, two concepts are combined: those of strong Nash equilibrium and Aumann–Drèze coalitional value. In particular, we are interested in conditions ensuring that the grand coalition is the best preference for all players. Monotonicity, convexity, cohesiveness and other conditions are used to provide several theoretical results that we apply to numerical examples including real-world economic situations.

Suggested Citation

  • Antonio Magaña & Francesc Carreras, 2018. "Coalition Formation and Stability," Group Decision and Negotiation, Springer, vol. 27(3), pages 467-502, June.
    • Handle: RePEc:spr:grdene:v:27:y:2018:i:3:d:10.1007_s10726-018-9570-1
    DOI: 10.1007/s10726-018-9570-1
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    References listed on IDEAS

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    3. Xianghui Li & Yang Li, 2021. "On the Structural Stability of Values for Cooperative Games," Journal of Optimization Theory and Applications, Springer, vol. 189(3), pages 873-888, June.
    4. Jia-Cai Liu & Deng-Feng Li, 2022. "Improved Shapley Values Based on Players’ Least Square Contributions and Their Applications in the Collaborative Profit Sharing of the Rural E-commerce," Group Decision and Negotiation, Springer, vol. 31(1), pages 7-22, February.

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