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The Maximal Payoff and Coalition Formation in Coalitional Games


  • Jingang Zhao

    (University of Saskatchewan)


This paper first establishes a new core theorem using the concept of generated payoffs: the TU (transferable utility) core is empty if and only if the maximum of generated payoffs (mgp) is greater than the grand coalition’s payoff v(N), or if and only if it is irrational to split v(N). It then provides answers to the questions of what payoffs to split, how to split the payoff, what coalitions to form, and how long each of the coalitions will be formed by rational players in coalitional TU games. Finally, it obtains analogous results in coalitional NTU (non-transferable utility) games.

Suggested Citation

  • Jingang Zhao, 2008. "The Maximal Payoff and Coalition Formation in Coalitional Games," Working Papers 2008.27, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2008.27

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    References listed on IDEAS

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    More about this item


    Coalition Formation; Core; Maximal Payoff; Minimum No-Blocking Payoff;

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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