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Evolution of Coalition Structures under Uncertainty

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Author Info
De Marco, Giuseppe
Romaniello, Maria

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Abstract

In Hart and Kurz (1983), stability and formation of coalition structures has been investigated in a noncooperative framework in which the strategy of each player is the coalition he wishes to join. However, given a strategy profile, the coalition structure formed is not unequivocally determined. In order to solve this problem, they proposed two rules of coalition structure formation: the $\gamma$ and the $\delta$ models. \par In this paper we look at evolutionary games arising from the $\gamma$ model for situations in which each player can choose mixed strategies and has vague expectations about the formation rule of the coalitions in which is not involved; players determine at every instant their strategies and we study how, for every player, subjective beliefs on the set of coalition structures evolve coherently to the strategic choices. Coherency is regarded as a viability constraint for the differential inclusions describing the evolutionary game. Therefore, we investigate viability properties of the constraints and characterize velocities of pairs belief/strategies which guarantee that coherency of beliefs is always satisfied. Finally, among many coherent belief revisions (evolutions), we investigate those characterized by minimal change and provide existence results.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14725.

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Date of creation: 26 Mar 2008
Date of revision: 16 Apr 2009
Handle: RePEc:pra:mprapa:14725

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Related research
Keywords: Coalition formation; coherent beliefs; differential inclusions; viability theory; minimal change belief revision;

Find related papers by JEL classification:
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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  1. Konishi, Hideo & Ray, Debraj, 2003. "Coalition formation as a dynamic process," Journal of Economic Theory, Elsevier, vol. 110(1), pages 1-41, May. [Downloadable!] (restricted)
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  2. Jean-Pierre Aubin & Patrick Saint-Pierre, 2006. "Guaranteed Inertia Functions In Dynamical Games," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 185-218. [Downloadable!] (restricted)
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This page was last updated on 2009-11-26.


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