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Overlapping Coalitions, Bargaining and Networks

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  • Agbaglah, Messan
  • Ehlers, Lars

Abstract

This paper extends the theory of endogenous coalition formation, with complete information and transferable utility, to the overlapping case. We propose a cover function bargaining game which allows the formation of overlapping coalitions at equilibrium. We show the existence of subgame perfect equilibrium and provide an algorithm to compute this equilibrium in the symmetric case. As an application, we establish an interesting link with the formation of networks.

Suggested Citation

  • Agbaglah, Messan & Ehlers, Lars, 2010. "Overlapping Coalitions, Bargaining and Networks," Sustainable Development Papers 96628, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemdp:96628
    DOI: 10.22004/ag.econ.96628
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    Cited by:

    1. Besner, Manfred, 2022. "The grand surplus value and repeated cooperative cross-games with coalitional collaboration," Journal of Mathematical Economics, Elsevier, vol. 102(C).
    2. Messan Agbaglah, 2014. "A recursive core for cooperative games with overlapping coalitions," Cahiers de recherche 14-07, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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