Contractually stable networks
AbstractWe develop a theoretical framework that allows us to study which bilateral links and coalition structures are going to emerge at equilibrium. We define the notion of coalitional network to represent a network and a coalition structure, where the network speciÖes the nature of the relationship each individual has with his coalition members and with individuals outside his coalition. To predict the coalitional networks that are going to emerge at equilibrium we propose the concept of contractual stability which requires that any change made to the coalitional network needs the consent of both the deviating players and their original coalition partners. We show that there always exists a contractually stable coalitional network under the simple majority decision rule and the component-wise egalitarian or majoritarian allocation rules. Moreover, requiring the consent of group members may help to reconcile stability and e¢ ciency.
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Date of creation: 2013
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Publication status: Published, International Journal of Game Theory, 2013, Published online 26 October 2012 (17 p.)
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Networks ; Coalition Structures ; Contractual Stability ; Allocation Rules Networks ; Strong efficiency;
Other versions of this item:
- Jean-Francois Caulier & Ana Mauleon & Vincent VAnnetelbosch, 2007. "Contractually Stable Networks," NajEcon Working Paper Reviews 843644000000000084, www.najecon.org.
- Vincent Vannetelbosch & Jean-François Caulier & Ana Mauleon, 2009. "Contractually Stable Networks," Working Papers 2009.47, Fondazione Eni Enrico Mattei.
- CAULIER, Jean-François & MAULEON, Ana & VANNETELBOSCH, Vincent, 2008. "Contractually stable networks," CORE Discussion Papers 2008066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean-François, CAULIER & Ana, MAULEON & Vincent, VANNETELBOSCH, 2008. "Contractually stable networks," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2008045, Université catholique de Louvain, Département des Sciences Economiques.
- A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
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