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A Refined Bargaining Set of an n-Person Game and Endogenous Coalition Formation

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Abstract

The two most fundamental questions in cooperative game theory are: When a game is played, what coalitions will be formed and what payoff vectors will be chosen? No previous solution concepts or theories in the literature provide satisfactory answers to both questions; answers are especially lacking for the first one. In this paper we introduce the refined bargaining set, which is the first solution concept in cooperative game theory that simultaneously provides answers to both of the fundamental questions.

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File URL: http://cowles.econ.yale.edu/P/cd/d09b/d0974.pdf
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Bibliographic Info

Paper provided by Cowles Foundation for Research in Economics, Yale University in its series Cowles Foundation Discussion Papers with number 974.

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Length: 23 pages
Date of creation: Apr 1991
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Publication status: Published in Games and Economic Behavior (1994), 6: 512-526
Handle: RePEc:cwl:cwldpp:974

Note: CFP 868.
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Postal: Yale University, Box 208281, New Haven, CT 06520-8281 USA
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Web page: http://cowles.econ.yale.edu/
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Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA

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Keywords: Cooperative games; game theory; bargaining coalition;

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  1. Vohra, Rajiv, 1991. "An existence theorem for a bargaining set," Journal of Mathematical Economics, Elsevier, vol. 20(1), pages 19-34.
  2. Boehm, Volker, 1974. "The Core of an Economy with Production," Review of Economic Studies, Wiley Blackwell, vol. 41(3), pages 429-36, July.
  3. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
  4. Herbert E. Scarf, 1965. "The Core of an N Person Game," Cowles Foundation Discussion Papers 182R, Cowles Foundation for Research in Economics, Yale University.
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