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Cooperative games with externalities and probabilistic coalitional beliefs

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  • Stamatopoulos, Giorgos

Abstract

We revisit cooperative games with externalities, i.e. cooperative games where the payoff of a coalition depends on the partition of the entire set of players. We define the worth of a coalition assuming that its members have probabilistic beliefs over the coalitional behavior of the outsiders, i.e., they assign various probability distributions on the set of partitions that the outsiders can form. We apply this framework to symmetric aggregative games and derive conditions on coalitional beliefs that guarantee the non-emptiness of the core of the induced cooperative games.

Suggested Citation

  • Stamatopoulos, Giorgos, 2018. "Cooperative games with externalities and probabilistic coalitional beliefs," MPRA Paper 92862, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92862
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    References listed on IDEAS

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    More about this item

    Keywords

    cooperative game; aggregative game; probabilistic belief; core;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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