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Farsighted Coalitional Stability in TU-games

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Author Info
Béal, Sylvain () (Sonderforschungsbereich 504)
Durieu, Jacques (CREUSET, University of Saint-Etienne)
Solal, Philippe (CREUSET, University of Saint-Etienne)

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Abstract

We study farsighted coalitional stability in the context of TUgames. Chwe (1994, p.318) notes that, in this context, it is difficult to prove nonemptiness of the largest consistent set. We show that every TU-game has a nonempty largest consistent set. Moreover, the proof of this result points out that each TU-game has a farsighted stable set. We go further by providing a characterization of the collection of farsighted stable sets in TU-games. We also show that the farsighted core of a TU-game is empty or is equal to the set of imputations of the game. Next, the relationships between the core and the largest consistent set are studied in superadditive TU-games and in clan games. In the last section, we explore the stability of the Shapley value. It is proved that the Shapley value of a superadditive TU-game is always a stable imputation: it is a core imputation or it constitutes a farsighted stable set. A necessary and sufficient condition for a superadditive TU-game to have the Shapley value in the largest consistent set is given.

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Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number 07-57.

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Length: 40 pages
Date of creation: 06 Aug 2007
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Handle: RePEc:xrs:sfbmaa:07-57

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  1. Ana Mauleon & Vincent Vannetelbosch, 2004. "Farsightedness and Cautiousness in Coalition Formation Games with Positive Spillovers," Theory and Decision, Springer, vol. 56(3), pages 291-324, 05. [Downloadable!]
  2. Rosenthal, Robert W., 1972. "Cooperative games in effectiveness form," Journal of Economic Theory, Elsevier, vol. 5(1), pages 88-101, August. [Downloadable!] (restricted)
  3. Branzei, Rodica & Dimitrov, Dinko & Tijs, Stef, 2006. "Convex games versus clan games," Discussion Paper 58, Tilburg University, Center for Economic Research. [Downloadable!]
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  4. Effrosyni Diamantoudi & Licun Xue, 2006. "Lucas Counter Example Revisited," Departmental Working Papers 2005-09, McGill University, Department of Economics. [Downloadable!]
  5. Licun Xue, 1998. "Coalitional stability under perfect foresight," Economic Theory, Springer, vol. 11(3), pages 603-627. [Downloadable!] (restricted)
  6. Xue, Licun, 1997. "Nonemptiness of the Largest Consistent Set," Journal of Economic Theory, Elsevier, vol. 73(2), pages 453-459, April. [Downloadable!] (restricted)
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