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Dynamic coalitional equilibrium

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  • Vartiainen, Hannu

Abstract

We study coalition formation processes of Konishi and Ray (2003) [27]. It is shown that an absorbing and deterministic process of coalition formation that also forms an equilibrium - satisfies a coalitional one-deviation property - does exist if one allows the process to be history dependent. All such dynamic equilibrium processes of coalition formation are characterized. Absorbing outcomes of dynamic equilibrium processes are also identified. It is shown that they always constitute a subset of the largest consistent set of Chwe (1994) [11]. A procedure that identifies a dynamic equilibrium process of coalition formation in finite time is constructed.

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  • Vartiainen, Hannu, 2011. "Dynamic coalitional equilibrium," Journal of Economic Theory, Elsevier, vol. 146(2), pages 672-698, March.
    • Handle: RePEc:eee:jetheo:v:146:y:2011:i:2:p:672-698
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    Cited by:

    1. Kimya, Mert, 2020. "Equilibrium coalitional behavior," Theoretical Economics, Econometric Society, vol. 15(2), May.
    2. Dutta, Bhaskar & Vartiainen, Hannu, 2020. "Coalition formation and history dependence," Theoretical Economics, Econometric Society, vol. 15(1), January.
    3. Korpela, Ville & Lombardi, Michele & Vartiainen, Hannu, 2020. "Do coalitions matter in designing institutions?," Journal of Economic Theory, Elsevier, vol. 185(C).
    4. Korpela, Ville & Lombardi, Michele & Vartiainen, Hannu, 2021. "Implementation in largest consistent set via rights structures," Games and Economic Behavior, Elsevier, vol. 128(C), pages 202-212.
    5. Korpela, Ville & Lombardi, Michele & Vartiainen, Hannu, 2019. "Implementation with foresighted agents," MPRA Paper 102496, University Library of Munich, Germany.
    6. , & , J., 2014. "Bargaining over an endogenous agenda," Theoretical Economics, Econometric Society, vol. 9(2), May.
    7. Flesch, J. & Kuipers, J. & Schoenmakers, G. & Vrieze, K., 2013. "Subgame-perfection in free transition games," European Journal of Operational Research, Elsevier, vol. 228(1), pages 201-207.
    8. Gong, Rui & Page, Frank & Wooders, Myrna, 2015. "Endogenous correlated network dynamics," LSE Research Online Documents on Economics 65098, London School of Economics and Political Science, LSE Library.
    9. Liu, Ce & Ali, S. Nageeb, 2019. "Conventions and Coalitions in Repeated Games," Working Papers 2019-8, Michigan State University, Department of Economics.
    10. Hannu Vartiainen, 2015. "Dynamic stable set as a tournament solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(2), pages 309-327, September.
    11. Korpela, Ville & Lombardi, Michele, 2019. "Mechanism design with farsighted agents," MPRA Paper 94436, University Library of Munich, Germany.
    12. Bhaskar Dutta & Hannu Vartiainen, 2018. "Coalition Formation and History Dependence," Working Papers 1006, Ashoka University, Department of Economics.
    13. Herings, P. Jean-Jacques & Predtetchinski, Arkadi, 2021. "Simple collective equilibria in stopping games," Journal of Mathematical Economics, Elsevier, vol. 95(C).
    14. Flesch, J. & Kuipers, J. & Schoenmakers, G. & Vrieze, K., 2011. "Subgame-perfection in free transition games," Research Memorandum 047, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    15. Herings, P.J.J. & Predtetchinski, A., 2013. "Voting in collective stopping games," Research Memorandum 014, Maastricht University, Graduate School of Business and Economics (GSBE).

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