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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.

Suggested Citation

  • 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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    More about this item

    Keywords

    Overlapping coalitions; Group structures; Constitutions; Stability; Many-to-many matchings;

    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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