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A Note on the Impossibility of a Satisfactory Concept of Stability for Coalition Formation Games

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Abstract

In this note we show that no solution to coalition formation games can satisfy a set of axioms that we propose as reasonable. Our result points out that "solutions" to the coalition formation cannot be interpreted as predictions of what would be ìresting pointsî for a game in the way stable coalition structures are usually interpreted.

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Bibliographic Info

Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 656.05.

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Length: 9
Date of creation: 01 Dec 2005
Date of revision:
Handle: RePEc:aub:autbar:656.05

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Keywords: Hedonic Game; Coalition Formation; Stability;

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References

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  1. Licun Xue, 1998. "Coalitional stability under perfect foresight," Economic Theory, Springer, vol. 11(3), pages 603-627.
  2. Suryapratim Banerjee & Hideo Konishi & Tayfun Sonmez, 1999. "Core in a Simple Coalition Formation Game," Boston College Working Papers in Economics 449, Boston College Department of Economics.
  3. Barbera, Salvador & Gerber, Anke, 2003. "On coalition formation: durable coalition structures," Mathematical Social Sciences, Elsevier, vol. 45(2), pages 185-203, April.
  4. Effrosyni Diamantoudi & Licun Xue, . "Farsighted Stability in Hedonic Games," Economics Working Papers 2000-12, School of Economics and Management, University of Aarhus.
  5. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
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Cited by:
  1. Falk, Armin & Fehr, Ernst & Zehnder, Christian, 2005. "The Behavioural Effects of Minimum Wages," CEPR Discussion Papers 5115, C.E.P.R. Discussion Papers.
  2. Tania Singer & Ernst Fehr, 2005. "The Neuroeconomics of Mind Reading and Empathy," American Economic Review, American Economic Association, vol. 95(2), pages 340-345, May.
  3. Weese, Eric, 2013. "Political Mergers as Coalition Formation: An Analysis of the Heisei Municipal Amalgamations," Working Papers 113, Yale University, Department of Economics.
  4. Vartiainen, Hannu, 2011. "Dynamic coalitional equilibrium," Journal of Economic Theory, Elsevier, vol. 146(2), pages 672-698, March.
  5. Carmelo Rodríguez Álvarez, 2006. "Strategy-Proof Coalition Formation," Economic Working Papers at Centro de Estudios Andaluces E2006/11, Centro de Estudios Andaluces.
  6. Gersbach, Hans & Haller, Hans, 2010. "Bargaining cum Voice," CEPR Discussion Papers 7774, C.E.P.R. Discussion Papers.
  7. Fehr, Ernst & Fischbacher, Urs & Kosfeld, Michael, 2005. "Neuroeconomic Foundation of Trust and Social Preferences," CEPR Discussion Papers 5127, C.E.P.R. Discussion Papers.
  8. Eric Weese, 2013. "Political Mergers as Coalition Formation: An Analysis of the Heisei Municipal Amalgamations," Working Papers 1022, Economic Growth Center, Yale University.
  9. Hannu Vartiainen, 2008. "Dynamic stable set," Discussion Papers 33, Aboa Centre for Economics.
  10. Eric Weese, 2011. "Political Mergers as Coalition Formation," Working Papers 997, Economic Growth Center, Yale University.
  11. Casajus, André, 2008. "On the stability of coalition structures," Economics Letters, Elsevier, vol. 100(2), pages 271-274, August.
  12. Hannu Vartiainen, 2007. "Dynamic Farsighted Stability," Discussion Papers 22, Aboa Centre for Economics.
  13. Hannu Vartiainen, 2008. "One-deviation principle in coalition formation," Discussion Papers 35, Aboa Centre for Economics.

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