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Strategy-Proof Coalition Formation

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  • Carmelo Rodriguez-Alvarez

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Abstract

We analyze coalition formation problems in which a group of agents is partitioned into coalitions and agents' preferences only depend on the coalition they belong to. We study rules that associate to each profile of agents' preferences a partition of the society. We focus on strategyproof rules on restricted domains of preferences, as the domains of additively representable or separable preferences. In such domains, only single-lapping rules satisfy strategy-proofness, individual rationality, non-bossiness, and flexibility. Single-lapping rules are characterized by severe restrictions on the set of feasible coalitions. These restrictions are consistent with hierarchical organizations and imply that single-lapping rules always select core-stable partitions. Thus, our results highlight the relation between the non-cooperative concept of strategy-proofness and the cooperative concept of core-stability. We analyze the implications of our results for matching problems

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Paper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we055525.

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Date of creation: Sep 2005
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Handle: RePEc:cte:werepe:we055525

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  1. Salvador Barberà & Anke Gerber, . "A Note on the Impossibility of a Satisfactory Concept of Stability for Coalition Formation Games," IEW - Working Papers 238, Institute for Empirical Research in Economics - University of Zurich.
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  5. Papai, Szilvia, 2004. "Unique stability in simple coalition formation games," Games and Economic Behavior, Elsevier, vol. 48(2), pages 337-354, August.
  6. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer, vol. 18(1), pages 135-153.
  7. Barbera, Salvador & Gerber, Anke, 2003. "On coalition formation: durable coalition structures," Mathematical Social Sciences, Elsevier, vol. 45(2), pages 185-203, April.
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  13. Sonmez, T., 1995. "Strategy-Proofness in Many-To-One Matching Problems," Papers 95-01, Michigan - Center for Research on Economic & Social Theory.
  14. Koji Takamiya, 2003. "On strategy-proofness and essentially single-valued cores: A converse result," Social Choice and Welfare, Springer, vol. 20(1), pages 77-83.
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  17. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
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Cited by:
  1. Debasis Mishra & Souvik Roy, 2011. "Strategy-proof partitioning," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 11-06, Indian Statistical Institute, New Delhi, India.

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