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Link formation in cooperative situations

Author

Listed:
  • Stef Tijs

    (Department of Econometrics and Center for Economic Research, Tilburg University, PO Box 90153, 5000 LE Tilburg, The Netherlands)

  • Anne van den Nouweland

    (Department of Economics, 435 PLC, 1285 University of Oregon, Eugene, OR 97403-1285, U.S.A.)

  • Bhaskar Dutta

    (Indian Statistical Institute, 7SJS Sansanwal Marg, New Delhi-110016, India)

Abstract

In this paper we study the endogenous formation of cooperation structures or communication graphs between players in a superadditive TU game. For each cooperation structure that is formed, the payoffs to the players are determined by an exogenously given solution. We model the process of cooperation structure formation as a game in strategic form. It is shown that several equilibrium refinements predict the formation of the complete cooperation structure or some structure which is payoff-equivalent to the complete structure. These results are obtained for a large class of solutions for cooperative games with cooperation structures.

Suggested Citation

  • Stef Tijs & Anne van den Nouweland & Bhaskar Dutta, 1998. "Link formation in cooperative situations," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(2), pages 245-256.
  • Handle: RePEc:spr:jogath:v:27:y:1998:i:2:p:245-256
    Note: Received September 1995/Revised version I October 1996/Revised version II April 1997/Final version September 1997
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    References listed on IDEAS

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    3. Kalyan Chatterjee & Bhaskar Dutia & Debraj Ray & Kunal Sengupta, 2013. "A Noncooperative Theory of Coalitional Bargaining," World Scientific Book Chapters, in: Bargaining in the Shadow of the Market Selected Papers on Bilateral and Multilateral Bargaining, chapter 5, pages 97-111, World Scientific Publishing Co. Pte. Ltd..
    4. Dutta, Bhaskar & Ray, Debraj, 1989. "A Concept of Egalitarianism under Participation Constraints," Econometrica, Econometric Society, vol. 57(3), pages 615-635, May.
    5. Van Huyck, John B & Battalio, Raymond C & Beil, Richard O, 1990. "Tacit Coordination Games, Strategic Uncertainty, and Coordination Failure," American Economic Review, American Economic Association, vol. 80(1), pages 234-248, March.
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