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Coalition formation under power relations

Author

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  • ,

    (Department of Economics, London School of Economics)

  • ,

    (Department of Economics, London School of Economics)

Abstract

We analyze the structure of a society driven by power relations. Our model has an exogenous power relation over the set of coalitions of agents. Agents determine the social order by forming coalitions. The power relations determine the ranking of agents in society for any social order. We study a cooperative game in partition function form and introduce a solution concept, the stable social order, which exists and includes the core. We investigate a refinement, the strongly stable social order, which incorporates a notion of robustness to variable power relations. We provide a complete characterization of strongly stable social orders.

Suggested Citation

  • , & ,, 2009. "Coalition formation under power relations," Theoretical Economics, Econometric Society, vol. 4(1), March.
    • Handle: RePEc:the:publsh:447
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    Citations

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    Cited by:

    1. Tobias Hiller, 2022. "Abilities and the structure of the firm," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(3), pages 339-349, September.
    2. Kevin Sheedy & Bernardo Guimaraes, 2011. "A model of equilibrium institutions," 2011 Meeting Papers 49, Society for Economic Dynamics.
    3. Sylvain Béal & Sylvain Ferrières & Philippe Solal, 2023. "A Core-Partition Ranking Solution to Coalitional Ranking Problems," Group Decision and Negotiation, Springer, vol. 32(4), pages 965-985, August.
    4. Herings, P. Jean-Jacques & Saulle, Riccardo & Seel, Christian, 2018. "The Last will be First, and the First Last: Segregation in Societies with Positional Externalities," Research Memorandum 027, Maastricht University, Graduate School of Business and Economics (GSBE).
    5. Mert Kimya, 2024. "Power, Status and the Stability of Hierarchies," Working Papers 2024-04, University of Sydney, School of Economics.
    6. Hideaki Goto, 2021. "Marginal Productivity and Coalition Formation with Distributive Norms," Working Papers EMS_2021_05, Research Institute, International University of Japan.
    7. Bernardo Guimaraes & Kevin D. Sheedy, 2017. "Guarding the Guardians," Economic Journal, Royal Economic Society, vol. 127(606), pages 2441-2477, November.
    8. Karl Jandoc & Ruben Juarez, 2017. "Self-enforcing coalitions with power accumulation," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(2), pages 327-355, May.
    9. Barberà, Salvador & Beviá, Carmen & Ponsatí, Clara, 2015. "Meritocracy, egalitarianism and the stability of majoritarian organizations," Games and Economic Behavior, Elsevier, vol. 91(C), pages 237-257.
    10. Han, Lining & Juarez, Ruben & Vargas, Miguel, 2023. "Robust equilibria in tournaments," Games and Economic Behavior, Elsevier, vol. 142(C), pages 423-439.
    11. Herings, P. Jean-Jacques & Saulle, Riccardo & Seel, Christian, 2020. "The Last will be First, and the First Last: Segregation in Societies with Relative Payoff Concerns (RM/18/027-revised-)," Research Memorandum 011, Maastricht University, Graduate School of Business and Economics (GSBE).
    12. Sylvain Béal & Sylvain Ferrières & Philippe Solal, 2021. "A Core-partition solution for coalitional rankings with a variable population domain," Working Papers 2021-06, CRESE.
    13. Bernardo Guimaraes & Kevin D. Sheedy, 2017. "Guarding the Guardians," Economic Journal, Royal Economic Society, vol. 127(606), pages 2441-2477, November.
    14. Cai, Xinyue & Kimya, Mert, 2023. "Stability of alliance networks," Games and Economic Behavior, Elsevier, vol. 140(C), pages 401-409.
    15. Tobias Hiller, 2023. "Training, Abilities and the Structure of Teams," Games, MDPI, vol. 14(3), pages 1-8, May.

    More about this item

    Keywords

    Power; coalition formation; stability;
    All these keywords.

    JEL classification:

    • D0 - Microeconomics - - General
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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