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Absorbing Sets in Coalitional Systems

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  • Olaizola Ortega, María Norma
  • Kuipers, Jerome
  • Iñarra García, María Elena

Abstract

The purpose of this paper is twofold: First, to present an approach and a solution for analyzing the stability of coalition structures: We define a coalitional system (a set and a binary relation on that set) that explains the transitions between coalition structures and we propose to solve these systems using the absorbing sets solution for abstract systems. Second, to perform an analysis of this approach to evidence its utility in determining the stable coalition structures for some socioeconomic problems. We find that the absorbing sets solution efficiently solves this class of coalitional systems.

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Bibliographic Info

Paper provided by Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística) in its series BILTOKI with number 2002-01.

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Date of creation: Dec 2001
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Handle: RePEc:ehu:biltok:200201

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Postal: Dpto. de Econometría y Estadística, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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Keywords: coalition structures; coalitional systems; absorbing sets solution;

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References

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  1. Kalai, Ehud & Schmeidler, David, 1977. "An admissible set occurring in various bargaining situations," Journal of Economic Theory, Elsevier, vol. 14(2), pages 402-411, April.
  2. Chwe Michael Suk-Young, 1994. "Farsighted Coalitional Stability," Journal of Economic Theory, Elsevier, vol. 63(2), pages 299-325, August.
  3. Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, vol. 20(2), pages 201-237, August.
  4. Ray, D. & Vohra, R., 1993. "Equilibrium Binding Agreements," Papers 21, Boston University - Department of Economics.
  5. Bloch, Francis, 1996. "Sequential Formation of Coalitions in Games with Externalities and Fixed Payoff Division," Games and Economic Behavior, Elsevier, vol. 14(1), pages 90-123, May.
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Cited by:
  1. Kuipers, Jerome & Olaizola Ortega, María Norma, 2004. "Internal Organization of Firms and Cartel Formation," IKERLANAK 2004-15, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  2. Olaizola Ortega, María Norma, 2003. "An Approach to the stability of international environmental agreements: the absorbing sets solution," IKERLANAK 2003-10, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.

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