Enemies and Friends in Hedonic Games: Individual Deviations, Stability and Manipulation
AbstractWe consider hedonic games with separable preferences, and explore the existence of stable coalition structures if only individual deviations are allowed.For two natural subdomains of separable preferences, namely preference domains based on (1) aversion to enemies and (2) appreciation of friends, we show that an individually stable coalition structure always exist, and a Nash stable coalition structure exists when mutuality is imposed.Moreover, we show that on the domain of separable preferences a contractual individually stable coalition structure can be obtained in polynomial time.Finally, we prove that, on each of the two subdomains, the corresponding algorithm that we use for finding Nash stable and individually stable coalition structures turns out to be strategy-proof.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2004-111.
Date of creation: 2004
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additive separability; coalition formation; hedonic games; stability; strategy-proofness;
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
- D20 - Microeconomics - - Production and Organizations - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-12-02 (All new papers)
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