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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. 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. [Downloadable!] (restricted)
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  2. 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. [Downloadable!] (restricted)
  3. Alcalde, Jose & Revilla, Pablo, 2004. "Researching with whom? Stability and manipulation," Journal of Mathematical Economics, Elsevier, vol. 40(8), pages 869-887, December. [Downloadable!] (restricted)
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  4. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July. [Downloadable!] (restricted)
  5. Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May. [Downloadable!] (restricted)
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  7. Dinko Dimitrov & Peter Borm & Ruud Hendrickx & Shao Sung, 2006. "Simple Priorities and Core Stability in Hedonic Games," Social Choice and Welfare, Springer, vol. 26(2), pages 421-433, April. [Downloadable!] (restricted)
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  8. Papai, Szilvia, 2004. "Unique stability in simple coalition formation games," Games and Economic Behavior, Elsevier, vol. 48(2), pages 337-354, August. [Downloadable!] (restricted)
  9. Barbera, Salvador & Gerber, Anke, 2003. "On coalition formation: durable coalition structures," Mathematical Social Sciences, Elsevier, vol. 45(2), pages 185-203, April. [Downloadable!] (restricted)
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  12. Antonio Romero-Medina & Katari´na Cechlárová, 2001. "Stability in coalition formation games," International Journal of Game Theory, Springer, vol. 29(4), pages 487-494. [Downloadable!] (restricted)
  13. Tayfun Sonmez, 1999. "Strategy-Proofness and Essentially Single-Valued Cores," Econometrica, Econometric Society, vol. 67(3), pages 677-690, May.
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  15. Sonmez, T., 1995. "Strategy-Proofness in Many-To-One Matching Problems," Papers 95-01, Michigan - Center for Research on Economic & Social Theory.
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  17. Gabrielle Demange, 2006. "The strategy structure of some coalition formation games," PSE Working Papers 2006-38, PSE (Ecole normale supérieure). [Downloadable!]
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  18. Ledyard, John O, 1977. "Incentive Compatible Behavior in Core-Selecting Organizations," Econometrica, Econometric Society, vol. 45(7), pages 1607-21, October. [Downloadable!] (restricted)
  19. Barbera, Salvador & Gerber, Anke, 2007. "A note on the impossibility of a satisfactory concept of stability for coalition formation games," Economics Letters, Elsevier, vol. 95(1), pages 85-90, April. [Downloadable!] (restricted)
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