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Constitutions and groups

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  • Mauleon, Ana
  • Roehl, Nils
  • Vannetelbosch, Vincent

Abstract

We develop a general theoretical framework that allows us to study the group structures that are going to emerge at equilibrium in overlapping coalition settings. We introduce the notion of constitution in order to model for each group the rules governing both the composition of the group and the conditions needed to leave the group and/or to become a new member of the group. We propose the concept of constitutional stability to study the group structures that are going to emerge at equilibrium. This concept generalizes previous stability concepts in the literature in which the constitutional rules were exogenously given or not explicitly considered. We combine requirements on constitutions and preferences for guaranteeing both the existence and the emergence of constitutionally stable group structures. Finally, we show how these results are useful to identify constitutionally stable group structures in many-to-many matchings.

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  • Mauleon, Ana & Roehl, Nils & Vannetelbosch, Vincent, 2018. "Constitutions and groups," Games and Economic Behavior, Elsevier, vol. 107(C), pages 135-152.
    • Handle: RePEc:eee:gamebe:v:107:y:2018:i:c:p:135-152
    DOI: 10.1016/j.geb.2017.10.022
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    Cited by:

    1. Mauleon, Ana & Roehl, Nils & Vannetelbosch, Vincent, 2019. "Paths to stability for overlapping group structures," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 19-24.
    2. Leonardo Boncinelli & Alessio Muscillo & Paolo Pin, 2022. "Efficiency and Stability in a Process of Teams Formation," Dynamic Games and Applications, Springer, vol. 12(4), pages 1101-1129, December.
    3. Mauleon, Ana & Roehl, Nils & Vannetelbosch, Vincent, 2018. "Constitutions and groups," Games and Economic Behavior, Elsevier, vol. 107(C), pages 135-152.
    4. Dollinger, Jérôme & Mauleon, Ana & Vannetelbosch, Vincent, 2023. "R&D and Market Sharing Agreements," LIDAM Discussion Papers CORE 2023004, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Ping Sun & Elena Parilina, 2022. "Impact of Utilities on the Structures of Stable Networks with Ordered Group Partitioning," Dynamic Games and Applications, Springer, vol. 12(4), pages 1131-1162, December.

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    More about this item

    Keywords

    Overlapping coalitions; Group structures; Constitutions; Stability; Many-to-many matchings;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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