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Stable decompositions of coalition formation games

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  • Agust'in G. Bonifacio
  • Elena Inarra
  • Pablo Neme

Abstract

It is known that a coalition formation game may not have a stable coalition structure. In this study we propose a new solution concept for these games, which we call "stable decomposition", and show that each game has at least one. This solution consists of a collection of coalitions organized in sets that "protect" each other in a stable way. When sets of this collection are singletons, the stable decomposition can be identified with a stable coalition structure. As an application, we study convergence to stability in coalition formation games.

Suggested Citation

  • Agust'in G. Bonifacio & Elena Inarra & Pablo Neme, 2020. "Stable decompositions of coalition formation games," Papers 2009.11689, arXiv.org, revised Dec 2021.
    • Handle: RePEc:arx:papers:2009.11689
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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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