Coalition Formation and Potential Games
AbstractIn this paper we study the formation of coalition structures in situations described by a cooperative game. Players choose independently which coalition they want to join. The payoffs to the players are determined by an allocation rule on the underlying game and the coalition structure that results from the strategies of the players according to some formation rule. We study two well-known coalition structure formation rules. We show that for both formation rules there exists a unique component efficient allocation rule that results in a potential game and study the coalition structures resulting from potential maximizing strategy profiles.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1999-83.
Date of creation: 1999
Date of revision:
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Web page: http://center.uvt.nl
cooperative game; coalition formation; potential game; potential maximizer;
Other versions of this item:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-11-08 (All new papers)
- NEP-GTH-1999-12-21 (Game Theory)
- NEP-IND-1999-11-15 (Industrial Organization)
- NEP-POL-1999-11-08 (Positive Political Economics)
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