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Strategy-proof coalition formation

  • Rodríguez Álvarez, Carmelo

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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Paper provided by Universidad Carlos III de Madrid. Departamento de Economía in its series UC3M Working papers. Economics with number we055525.

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Date of creation: Sep 2005
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Handle: RePEc:cte:werepe:we055525
Contact details of provider: Web page: http://www.eco.uc3m.es/

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  1. Demange, Gabrielle, 2009. "The strategy structure of some coalition formation games," Games and Economic Behavior, Elsevier, vol. 65(1), pages 83-104, January.
  2. Dinko Dimitrov & Peter Borm & Ruud Hendrickx & Shao Chin Sung, 2004. "Simple Priorities and Core Stability in Hedonic Games," Working Papers 2004.51, Fondazione Eni Enrico Mattei.
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  11. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
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  13. Dutta, B. & Masso, J., 1996. "Stability of Matchings when Individuals Have Preferences Over Colleagues," UFAE and IAE Working Papers 325.96, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  14. Koji Takamiya, 2003. "On strategy-proofness and essentially single-valued cores: A converse result," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 20(1), pages 77-83.
  15. Roth,Alvin E. & Sotomayor,Marilda A. Oliveira, 1992. "Two-Sided Matching," Cambridge Books, Cambridge University Press, number 9780521437882, June.
  16. Barbera, S. & Sonnenschein, H., 1988. "Voting By Quota And Committee," UFAE and IAE Working Papers 95-88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  17. Satterthwaite, Mark Allen, 1975. "Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions," Journal of Economic Theory, Elsevier, vol. 10(2), pages 187-217, April.
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