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Link formation in cooperative situations

  • 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)

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.

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Article provided by Springer in its journal International Journal of Game Theory.

Volume (Year): 27 (1998)
Issue (Month): 2 ()
Pages: 245-256

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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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  1. John B Van Huyck & Raymond C Battalio & Richard O Beil, 1997. "Tacit coordination games, strategic uncertainty, and coordination failure," Levine's Working Paper Archive 1225, David K. Levine.
  2. Chatterjee, Kalyan & Bhaskar Dutta & Debraj Ray & Kunal Sengupta, 1993. "A Noncooperative Theory of Coalitional Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 463-77, April.
  3. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
  4. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
  5. Sengupta, Abhijit & Sengupta, Kunal, 1994. "Viable Proposals," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 347-59, May.
  6. Dutta, Bhaskar & Ray, Debraj, 1989. "A Concept of Egalitarianism under Participation Constraints," Econometrica, Econometric Society, vol. 57(3), pages 615-35, May.
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