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Endogenous Formation Of Coalitions

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Author Info
GUILLERMO OWEN () (Department of Applied Mathematics, Naval Postgraduate School, Monterey, CA 93943, USA)
Abstract

We develop a model of coalition formation based on personal proximities among the players of an n-person game. Several examples are worked out in detail, showing that certain coalitions are much more stable than others, and/or much more likely to form than others. We also consider the dynamics of such coalition-formation. By a numerical example, we show that small changes in the initial conditions can lead to very different results in the coalitions formed in a given game.

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Publisher Info
Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.

Volume (Year): 10 (2008)
Issue (Month): 04 ()
Pages: 461-470
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Handle: RePEc:wsi:igtrxx:v:10:y:2008:i:04:p:461-470

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Find related papers by JEL classification:
B4 - Schools of Economic Thought and Methodology - - Economic Methodology
C0 - Mathematical and Quantitative Methods - - General
C6 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
D5 - Microeconomics - - General Equilibrium and Disequilibrium
D7 - Microeconomics - - Analysis of Collective Decision-Making
M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics

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This page was last updated on 2009-11-13.

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