Coalition Formation in General Apex Games
AbstractWe generalize the class of apex game by combining a winning coalition of symmetric minor players with�a collection of apex sets which can form winning coalitions only together with a fixed quota of minor players.� By applying power indices to these games and their subgames we generate players' preferences over coalitions which we use to define a coalition formation game.� We focus on strongly monotonic power indices and investigate under which conditions on the initial general apex game there are core stable coalitions in the resulting coalition formation game.� Besides several general results, we develop condition for the Shapley-Shubik index, the Banzhaf index, and the normalized Banzhaf index in particular.� It turns out that many statements can be easily verified for arbitrary collections of apex sets.� Nevertheless, we give some relations between the collection of apex sets and the set of core stable coalitions.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 680.
Date of creation: 28 Oct 2013
Date of revision:
Apex Games; Core Stability; Hedonic Games; Strong monotony;
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-16 (All new papers)
- NEP-CDM-2013-11-16 (Collective Decision-Making)
- NEP-GTH-2013-11-16 (Game Theory)
- NEP-HPE-2013-11-16 (History & Philosophy of Economics)
- NEP-NET-2013-11-16 (Network Economics)
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