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Status-Seeking in Hedonic Games with Heterogeneous Players

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  • Emiliya Lazarova

    (Queen's University Belfast)

  • Dinko Dimitrov

    (Saarland University)

Abstract

We study hedonic games with heterogeneous player types that reflect her nationality, ethnic background, or skill type. Agents' preferences are dictated by status-seeking where status can be either local or global. The two dimensions of status define the two components of a generalized constant elasticity of substitution utility function. In this setting, we characterize the core as a function of the utility's parameter values and show that in all cases the corresponding cores are non-empty. We further discuss the core stable outcomes in terms of their segregating versus integrating properties.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2010.122.

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Date of creation: Oct 2010
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Handle: RePEc:fem:femwpa:2010.122

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Keywords: Coalitions; Core; Stability; Status-seeking;

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References

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  13. Marek Pycia, 2012. "Stability and Preference Alignment in Matching and Coalition Formation," Econometrica, Econometric Society, vol. 80(1), pages 323-362, 01.
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  17. Dutta, B. & Masso, J., 1996. "Stability of Matchings when Individuals Have Preferences Over Colleagues," UFAE and IAE Working Papers 325.96, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  18. Eeckhout, Jan, 2000. "On the uniqueness of stable marriage matchings," Economics Letters, Elsevier, vol. 69(1), pages 1-8, October.
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Cited by:
  1. Dimitrov, Dinko & Lazarova, Emiliya, 2011. "Two-sided coalitional matchings," Mathematical Social Sciences, Elsevier, vol. 62(1), pages 46-54, July.

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