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Stable and efficient coalitional networks

Author

Listed:
  • Jean-François Caulier

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • A. Mauleon

    (CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain = Catholic University of Louvain, CEREC - Centre de recherche en économie - Université Saint-Louis - Bruxelles)

  • Jose J. Sempere-Monerris

    (CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain = Catholic University of Louvain, Department of Economic Analysis - UV - Universitat de València)

  • Vincent Vannetelbosch

    (CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain = Catholic University of Louvain, CEREC - Centre de recherche en économie - Université Saint-Louis - Bruxelles)

Abstract

We develop a theoretical framework that allows us to study which bilateral links and coalition structures are going to emerge at equilibrium. We define the notion of coalitional network to represent a network and a coalition structure, where the network specifies the nature of the relationship each individual has with her coalition members and with individuals outside her coalition. To predict the coalitional networks that are going to emerge at equilibrium we propose the concepts of strong stability and of contractual stability. Contractual stability imposes that any change made to the coalitional network needs the consent of both the deviating players and their original coalition partners. Requiring the consent of coalition members under the simple majority or unanimity decision rule may help to reconcile stability and efficiency. Moreover, this new framework can provide insights that one cannot obtain if coalition formation and network formation are tackled separately and independently.

Suggested Citation

  • Jean-François Caulier & A. Mauleon & Jose J. Sempere-Monerris & Vincent Vannetelbosch, 2013. "Stable and efficient coalitional networks," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00854094, HAL.
  • Handle: RePEc:hal:cesptp:hal-00854094
    DOI: 10.1007/s10058-012-0132-8
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Caulier, Jean-François & Mauleon, Ana & Vannetelbosch, Vincent, 2015. "Allocation rules for coalitional network games," Mathematical Social Sciences, Elsevier, vol. 78(C), pages 80-88.
    2. Christophe Bravard & Sudipta Sarangi & ANA MAULEON & JOSE J. SEMPERE-MONERRIS & VINCENT VANNETELBOSCH, 2016. "Contractually Stable Alliances," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 18(2), pages 212-225, April.
    3. Mauleon, Ana & Roehl, Nils & Vannetelbosch, Vincent, 2019. "Paths to stability for overlapping group structures," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 19-24.
    4. Ana Mauleon & Jose J. Sempere-Monerris & Vincent Vannetelbosch, 2023. "Limited Farsightedness in R &D Network Formation," Dynamic Games and Applications, Springer, vol. 13(2), pages 549-565, June.
    5. Pierre de Callataÿ & Ana Mauleon & Vincent Vannetelbosch, 2024. "Local farsightedness in network formation," International Journal of Economic Theory, The International Society for Economic Theory, vol. 20(2), pages 199-226, June.
    6. Mauleon, Ana & Roehl, Nils & Vannetelbosch, Vincent, 2018. "Constitutions and groups," Games and Economic Behavior, Elsevier, vol. 107(C), pages 135-152.
    7. Chenghong Luo & Ana Mauleon & Vincent Vannetelbosch, 2022. "Coalition-proof stable networks," Review of Economic Design, Springer;Society for Economic Design, vol. 26(2), pages 185-209, June.
    8. de Callatay, Pierre & Mauleon, Ana & Vannetelbosch, Vincent, 2021. "Minimally Farsighted Unstable Networks," LIDAM Discussion Papers CORE 2021012, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Dollinger, Jérôme & Mauleon, Ana & Vannetelbosch, Vincent, 2023. "R&D and Market Sharing Agreements," LIDAM Discussion Papers CORE 2023004, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Safi, Shahir, 2022. "Listen before you link: Optimal monitoring rules for communication networks," Games and Economic Behavior, Elsevier, vol. 133(C), pages 230-247.

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    More about this item

    Keywords

    Networks; Coalition structures; Stability; Efficiency;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

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