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Expectation formation rules and the core of partition function games

Author

Listed:
  • Francis Bloch

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

  • Anne Van den Nouweland

    (University of Oregon [Eugene])

Abstract

This paper proposes axiomatic foundations of expectation formation rules, by which deviating players anticipate the reaction of external players in a partition function game. The projection rule is the only rule satisfying subset consistency and responsiveness to the original partition of non-deviating players. It is also the only rule satisfying subset consistency, independence of the original partition of deviating players, and coherence of expectations. Exogenous rules are the only rules satisfying subset consistency and independence of the original partition, and the pessimistic rule is the only rule generating superadditive coalitional games.

Suggested Citation

  • Francis Bloch & Anne Van den Nouweland, 2014. "Expectation formation rules and the core of partition function games," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01162227, HAL.
  • Handle: RePEc:hal:cesptp:hal-01162227
    DOI: 10.1016/j.geb.2014.10.012
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01162227
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    References listed on IDEAS

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    Cited by:

    1. repec:cai:repdal:redp_274_0579 is not listed on IDEAS
    2. Kóczy, LászlóÁ., 2015. "Stationary consistent equilibrium coalition structures constitute the recursive core," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 104-110.
    3. Heinrich H. Nax, 2014. "A Note on the Core of TU-cooperative Games with Multiple Membership Externalities," Games, MDPI, Open Access Journal, vol. 5(4), pages 1-13, October.
    4. Marini, Marco A., 2016. "Collusive Agreements in Vertically Differentiated Markets," MPRA Paper 75369, University Library of Munich, Germany.
    5. Stéphane Gonzalez & Alain Marciano, 2017. "De nouveaux éclairages sur le théorème de Coase et la vacuité du cœur," Revue d'économie politique, Dalloz, vol. 127(4), pages 579-600.
    6. Messan Agbaglah, 2017. "Overlapping coalitions, bargaining and networks," Theory and Decision, Springer, vol. 82(3), pages 435-459, March.
    7. ALVAREZ-MOZOS, Mikel & EHLERS, Lars, 2017. "Externalities and the nucleolus," Cahiers de recherche 2017-04, Universite de Montreal, Departement de sciences economiques.
    8. repec:wsi:igtrxx:v:19:y:2017:i:04:n:s0219198917500207 is not listed on IDEAS
    9. Gabszewicz, Jean J. & Marini, Marco A. & Tarola, Ornella, 2016. "Core existence in vertically differentiated markets," Economics Letters, Elsevier, vol. 149(C), pages 28-32.

    More about this item

    Keywords

    partition function games; core; expectation formation; axiomatization;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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