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Strategy-proof coalition formation

  • Carmelo Rodríguez-Álvarez

    ()

We analyze coalition formation problems in which a group of agents is partitioned into coalitions and agents' preferences only depend on the coalition they belong to. We study rules that associate to each profile of agents' preferences a partition of the society. We focus on strategyproof rules on restricted domains of preferences, as the domains of additively representable or separable preferences. In such domains, only single-lapping rules satisfy strategy-proofness, individual rationality, non-bossiness, and flexibility. Single-lapping rules are characterized by severe restrictions on the set of feasible coalitions. These restrictions are consistent with hierarchical organizations and imply that single-lapping rules always select core-stable partitions. Thus, our results highlight the relation between the non-cooperative concept of strategy-proofness and the cooperative concept of core-stability. We analyze the implications of our results for matching problems

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File URL: http://hdl.handle.net/10.1007/s00182-009-0162-9
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Article provided by Springer in its journal International Journal of Game Theory.

Volume (Year): 38 (2009)
Issue (Month): 3 (November)
Pages: 431-452

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Handle: RePEc:spr:jogath:v:38:y:2009:i:3:p:431-452
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