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Coalition formation in the Airport Problem

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  • Mahmoud Farrokhi

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    (Institute of Mathematical Economics, Bielefeld University)

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    Abstract

    We have studied the incentives of forming coalitions in the Airport Problem. It has shown that in this class of games, if coalitions form freely, the Shapley value does not lead to the formation of grand or coalitions with many players. Just a coalition with a few number of players forms to act as the producer and other players would be the consumers of the product. We have found the two member coalition which forms and we have checked its stability.

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    File URL: http://www.imw.uni-bielefeld.de/papers/files/imw-wp-416.pdf
    File Function: First version, 2009
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    Bibliographic Info

    Paper provided by Bielefeld University, Center for Mathematical Economics in its series Working Papers with number 416.

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    Length: 22 pages
    Date of creation: Mar 2009
    Date of revision:
    Handle: RePEc:bie:wpaper:416

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    1. Huang, Chen-Ying & Sjostrom, Tomas, 2003. "Consistent solutions for cooperative games with externalities," Games and Economic Behavior, Elsevier, vol. 43(2), pages 196-213, May.
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