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Status-Seeking in Hedonic Games with Heterogeneous Players

  • Emiliya Lazarova

    (Queen's University Belfast)

  • Dinko Dimitrov

    (Saarland University)

We study hedonic games with heterogeneous player types that reflect her nationality, ethnic background, or skill type. Agents' preferences are dictated by status-seeking where status can be either local or global. The two dimensions of status define the two components of a generalized constant elasticity of substitution utility function. In this setting, we characterize the core as a function of the utility's parameter values and show that in all cases the corresponding cores are non-empty. We further discuss the core stable outcomes in terms of their segregating versus integrating properties.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2010.122.

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Date of creation: Oct 2010
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Handle: RePEc:fem:femwpa:2010.122
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