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Strategy-Proof Coalition Formation

  • Carmelo Rodriguez-Alvarez


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, Departamento de Economía in its series Economics Working Papers with number we055525.

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Date of creation: Sep 2005
Date of revision:
Handle: RePEc:cte:werepe:we055525
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  1. Ledyard, John O, 1977. "Incentive Compatible Behavior in Core-Selecting Organizations," Econometrica, Econometric Society, vol. 45(7), pages 1607-21, October.
  2. Gabrielle Demange, 2004. "On Group Stability in Hierarchies and Networks," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 754-778, August.
  3. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
  4. Salvador Barberà & Anke Gerber, 2005. "A Note on the Impossibility of a Satisfactory Concept of Stability for Coalition Formation Games," UFAE and IAE Working Papers 656.05, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  5. 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.
  6. 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).
  7. Dinko Dimitrov & Peter Borm & Ruud Hendrickx & Shao Sung, 2006. "Simple Priorities and Core Stability in Hedonic Games," Social Choice and Welfare, Springer, vol. 26(2), pages 421-433, April.
  8. Barbera, Salvador & Gerber, Anke, 2003. "On coalition formation: durable coalition structures," Mathematical Social Sciences, Elsevier, vol. 45(2), pages 185-203, April.
  9. José Alcalde & Pablo Revilla, 2003. "Researching with Whom? Stability and Manipulation," Economic Working Papers at Centro de Estudios Andaluces E2003/35, Centro de Estudios Andaluces.
  10. Salvador Barbera & Hugo Sonnenschein & Lin Zhou, 1990. "Voting by Committees," Cowles Foundation Discussion Papers 941, Cowles Foundation for Research in Economics, Yale University.
  11. Papai, Szilvia, 2004. "Unique stability in simple coalition formation games," Games and Economic Behavior, Elsevier, vol. 48(2), pages 337-354, August.
  12. Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May.
  13. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer, vol. 18(1), pages 135-153.
  14. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
  15. Tayfun Sonmez, 1999. "Strategy-Proofness and Essentially Single-Valued Cores," Econometrica, Econometric Society, vol. 67(3), pages 677-690, May.
  16. repec:cup:cbooks:9780521437882 is not listed on IDEAS
  17. Tayfun Sönmez, 1994. "Strategy-proofness in many-to-one matching problems," Review of Economic Design, Springer, vol. 1(1), pages 365-380, December.
  18. Demange, Gabrielle, 2009. "The strategy structure of some coalition formation games," Games and Economic Behavior, Elsevier, vol. 65(1), pages 83-104, January.
  19. Koji Takamiya, 2003. "On strategy-proofness and essentially single-valued cores: A converse result," Social Choice and Welfare, Springer, vol. 20(1), pages 77-83.
  20. Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
  21. 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).
  22. Antonio Romero-Medina & Katari´na Cechlárová, 2001. "Stability in coalition formation games," International Journal of Game Theory, Springer, vol. 29(4), pages 487-494.
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