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The [gamma]-core and coalition formation Author info | Abstract | Publisher info | Download info | Related research | Statistics CHANDER, Parkash
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This paper reinterprets by [gamma]-core (Chander and Tulkens (1995, 1997)) and justifies it as well as its prediction that the efficient coalition structure is stable in terms of the coalition formation theory. It is assumed that coalitions can freely merge or break apart, are farsighted (that is, it is the final and not the immediate payoffs that matter to the coalitions)and a coalition may deviate if and only if it stands to gain from it. It is then shown that subsequent to a deviation by a coalition, the nonmembers will have incentives to break apart into singletons, as is assumed in the definition of the [gamma]-characteristic function, and that the grand coalition is the only stable coalition structure.
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number
2003046.
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Date of creation: 01 Jun 2003Date of revision:
Handle: RePEc:cor:louvco:2003046Contact details of provider: Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium) Phone: 32(10)474321 Fax: +32 10474301 Email: Web page: http://www.uclouvain.be/core More information through EDIRC
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Keywords: core ; characteristic function ; strategic games ; coalition formation ; Other versions of this item:
Find related papers by 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 D62 - Microeconomics - - Welfare Economics - - - Externalities
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