Competitive outcomes and endogenous coalition formation in an n-person game
We extend the analysis of competitive outcomes in TU market games of Shapley and Shubik [Shapley, L.S., Shubik, M., 1975. Competitive outcomes in the cores of market games. International Journal of Game Theory 4, 229-237] in two ways. First, our representing economies are coalition production economies. Second, and more importantly, our analysis holds for arbitrary TU games. By adopting the C-stable set of Guesnerie and Oddou [Guesnerie, R., Oddou, C., 1979. On economic games which are not necessarily superadditive. Economics Letters 3, 301-306], renamed c-core in our paper, we are able to characterize competitive outcomes even in games with empty core. As competitive outcomes are associated with specific coalition structures, our main result provides an endogenous determination of coalition building and shows that the c-core of any TU game coincides with the set of competitive outcomes of the corresponding coalition production economy.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Guesnerie, Roger & Oddou, Claude, 1981.
"Second best taxation as a game,"
Journal of Economic Theory,
Elsevier, vol. 25(1), pages 67-91, August.
- Guesnerie Roger & Oddou Claude, 1979. "Second best taxation as a game," CEPREMAP Working Papers (Couverture Orange) 7919, CEPREMAP.
- Trockel, Walter, 1996. "A Walrasian approach to bargaining games," Economics Letters, Elsevier, vol. 51(3), pages 295-301, June.
- Trockel, Walter, 2017. "A Walrasian approach to bargaining games," Center for Mathematical Economics Working Papers 231, Center for Mathematical Economics, Bielefeld University.
- Shapley, Lloyd S. & Shubik, Martin, 1969. "On market games," Journal of Economic Theory, Elsevier, vol. 1(1), pages 9-25, June.
- Billera, Louis J., 1974. "On games without side payments arising from a general class of markets," Journal of Mathematical Economics, Elsevier, vol. 1(2), pages 129-139, August.
- Gabrielle Demange, 2004. "Group formation: The interaction of increasing returns and preferences' diversity," DELTA Working Papers 2004-30, DELTA (Ecole normale supérieure).
- Gabrielle Demange, 2005. "Group formation: The interaction of increasing returns and preferences' diversity," Post-Print halshs-00576792, HAL.
- Gabrielle Demange, 2005. "Group formation: The interaction of increasing returns and preferences' diversity," Post-Print halshs-00573563, HAL.
- Sondermann, Dieter, 1974. "Economies of scale and equilibria in coalition production economies," Journal of Economic Theory, Elsevier, vol. 8(3), pages 259-291, July.
- McKenzie, Lionel W, 1981. "The Classical Theorem on Existence of Competitive Equilibrium," Econometrica, Econometric Society, vol. 49(4), pages 819-841, June.
- L. W. McKenzie, 2010. "The Classical Theorem on Existence of Competitive Equilibrium," Levine's Working Paper Archive 1388, David K. Levine.
- Wooders, Myrna Holtz, 1994. "Equivalence of Games and Markets," Econometrica, Econometric Society, vol. 62(5), pages 1141-1160, September.
- Qin, Cheng-Zhong, 1993. "A Conjecture of Shapley and Shubik on Competitive Outcomes in the Cores of NTU Market Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 22(4), pages 335-344.
- Mas-Colell, Andreu, 1989. "An equivalence theorem for a bargaining set," Journal of Mathematical Economics, Elsevier, vol. 18(2), pages 129-139, April.
- Anderson, Robert M, 1978. "An Elementary Core Equivalence Theorem," Econometrica, Econometric Society, vol. 46(6), pages 1483-1487, November.
- Edgeworth, Francis Ysidro, 1881. "Mathematical Psychics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number edgeworth1881.
- Neuefeind, Wilhelm, 1974. "A stochastic bargaining process for n-person games," Journal of Mathematical Economics, Elsevier, vol. 1(2), pages 175-191, August.
- Zhou Lin, 1994. "A New Bargaining Set of an N-Person Game and Endogenous Coalition Formation," Games and Economic Behavior, Elsevier, vol. 6(3), pages 512-526, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:44:y:2008:i:7-8:p:853-860. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.