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Overlapping Coalitions, Bargaining and Networks

Author

Listed:
  • Messan Agbaglah

    (Département de Sciences Economiques and CIREQ, Université de Montréal)

  • Lars Ehlers

    (Département de Sciences Economiques and CIREQ, Université de Montréal)

Abstract

This paper extends the theory of endogenous coalition formation, with complete information and transferable utility, to the overlapping case. We propose a cover function bargaining game which allows the formation of overlapping coalitions at equilibrium. We show the existence of subgame perfect equilibrium and provide an algorithm to compute this equilibrium in the symmetric case. As an application, we establish an interesting link with the formation of networks.

Suggested Citation

  • Messan Agbaglah & Lars Ehlers, 2010. "Overlapping Coalitions, Bargaining and Networks," Working Papers 2010.116, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2010.116
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    Cited by:

    1. Messan Agbaglah, 2014. "A recursive core for cooperative games with overlapping coalitions," Cahiers de recherche 14-07, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    2. Besner, Manfred, 2022. "The grand surplus value and repeated cooperative cross-games with coalitional collaboration," Journal of Mathematical Economics, Elsevier, vol. 102(C).
    3. Ping Sun & Elena Parilina, 2024. "Stable and efficient networks with neighborhood‐influenced externalities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(3), June.

    More about this item

    Keywords

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    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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