IDEAS home Printed from https://ideas.repec.org/p/hal/cesptp/halshs-00344797.html
   My bibliography  Save this paper

A coalition formation value for games with externalities

Author

Listed:
  • Michel Grabisch

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

  • Yukihiko Funaki

    () (Waseda University)

Abstract

The coalition formation problem in an economy with externalities can be adequately modeled by using games in partition function form (PFF games), proposed by Thrall and Lucas. If we suppose that forming the grand coalition generates the largest total surplus, a central question is how to allocate the worth of the grand coalition to each player, i.e., how to find an adequate solution concept, taking into account the whole process of coalition formation. We propose in this paper the original concepts of scenario-value, process-value and coalition formation value, which represent the average contribution of players in a scenario (a particular sequence of coalitions within a given coalition formation process), in a process (a sequence of partitions of the society), and in the whole (all processes being taken into account), respectively. We give an application to Cournot oligopoly, and two axiomatizations of the scenario-value.

Suggested Citation

  • Michel Grabisch & Yukihiko Funaki, 2011. "A coalition formation value for games with externalities," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00344797, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00344797
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00344797v2
    as

    Download full text from publisher

    File URL: https://halshs.archives-ouvertes.fr/halshs-00344797v2/document
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eyckmans, Johan & Finus, Michael & Mallozzi, Lina, 2011. "A New Class of Welfare Maximizing Stable Sharing Rules for Partition Function Games with Externalities," Working Papers 2011/08, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    2. repec:wsi:igtrxx:v:19:y:2017:i:02:n:s0219198917500074 is not listed on IDEAS

    More about this item

    Keywords

    Coalition formation; games in partition function form; solution concept; Cournot oligopoly.; Formation de coalition; jeu en forme de fonction de partition; concept de solution; oligopolie de Cournot.;

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:halshs-00344797. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.