Coalition Formation and Potential Games
In this paper we study the formation of coalition structures in situations described by a cooperative game. Players choose independently which coalition they want to join. The payoffs to the players are determined by an allocation rule on the underlying game and the coalition structure that results from the strategies of the players according to some formation rule. We study two well-known coalition structure formation rules. We show that for both formation rules there exists a unique component efficient allocation rule that results in a potential game and study the coalition structures resulting from potential maximizing strategy profiles.
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- Slikker, Marco & Dutta, Bhaskar & van den Nouweland, Anne & Tijs, Stef, 2000.
"Potential maximizers and network formation,"
Mathematical Social Sciences,
Elsevier, vol. 39(1), pages 55-70, January.
- Slikker, M. & Dutta, P.K. & van den Nouweland, C.G.A.M. & Tijs, S.H., 1998. "Potential Maximizers and Network Formation," Research Memorandum 758, Tilburg University, School of Economics and Management.
- Slikker, M. & Dutta, B. & Tijs, S.H. & van den Nouweland, C.G.A.M., 2000. "Potential maximizers and network formation," Other publications TiSEM a4848315-a441-4d55-acde-9, Tilburg University, School of Economics and Management.
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- Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-1064, July.
- (*), J. Sánchez-Soriano & Stef Tijs & Ana Meca-Martínez & I. García-Jurando, 1998. "Strong equilibria in claim games corresponding to convex games," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(2), pages 211-217.
- Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May.
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