A Competitive Partnership Formation Process
A group of heterogeneous agents may form partnerships in pairs. All single agents as well as all partnerships generate values. If two agents choose to cooperate, they need to specify how to split their joint value among one another. In equilibrium, which may or may not exist, no agents have incentives to break up or form new partnerships. This paper proposes a dynamic competitive adjustment process that always either finds an equilibrium or exclusively disproves the existence of any equilibrium in finitely many steps. When an equilibrium exists, partnership and revenue distribution will be automatically and endogenously determined by the process. Moreover, several fundamental properties of the equilibrium solution and the model are derived.
|Date of creation:||04 Feb 2013|
|Date of revision:|
|Publication status:||Published as Andersson, Tommy, Jens Gudmundsson, Adolphus Talman and Zaifu Yang, 'A Competitive Partnership Formation Process' in Games and Economic Behavior, 2014, pages 165-177.|
|Contact details of provider:|| Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden|
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andersson, T.D. & Andersson, C. & Talman, A.J.J., 2010.
"Sets in Excess Demand in Ascending Auctions with Unit-Demand Bidders,"
2010-51, Tilburg University, Center for Economic Research.
- Andersson, Tommy & Andersson, Christer & Talman, Adolphus Johannes Jan, 2010. "Sets in Excess Demand in Ascending Auctions with Unit-Demand Bidders," Working Papers 2010:15, Lund University, Department of Economics, revised 28 Jun 2012.
- Svensson, Lars-Gunnar, 1983. "Large Indivisibles: An Analysis with Respect to Price Equilibrium and Fairness," Econometrica, Econometric Society, vol. 51(4), pages 939-54, July.
- Debasis Mishra & Dolf Talman, 2008.
"Characterization of the walrasian equilibria of the assignment model,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
08-07, Indian Statistical Institute, New Delhi, India.
- Mishra, Debasis & Talman, Dolf, 2010. "Characterization of the Walrasian equilibria of the assignment model," Journal of Mathematical Economics, Elsevier, vol. 46(1), pages 6-20, January.
- Mishra, D. & Talman, A.J.J., 2010. "Characterization of the Walrasian equilibria of the assignment model," Other publications TiSEM 3e249b02-c0f4-4ccf-bd37-f, Tilburg University, School of Economics and Management.
- Ning Sun & Zaifu Yang, 2003. "A General Strategy Proof Fair Allocation Mechanism," Center for Mathematical Economics Working Papers 346, Center for Mathematical Economics, Bielefeld University.
- Andersson, Tommy & Svensson, Lars-Gunnar, 2006.
"Non-manipulable Assignment of Individuals to Positions Revisited,"
2006:11, Lund University, Department of Economics, revised 12 Apr 2007.
- Andersson, Tommy & Svensson, Lars-Gunnar, 2008. "Non-manipulable assignment of individuals to positions revisited," Mathematical Social Sciences, Elsevier, vol. 56(3), pages 350-354, November.
- Kaneko, Mamoru & Yamamoto, Yoshitsugu, 1986. "The existence and computation of competitive equilibria in markets with an indivisible commodity," Journal of Economic Theory, Elsevier, vol. 38(1), pages 118-136, February.
- Talman, Dolf & Yang, Zaifu, 2011.
"A model of partnership formation,"
Journal of Mathematical Economics,
Elsevier, vol. 47(2), pages 206-212, March.
- Andersson, Tommy & Erlanson, Albin, 2013.
"Multi-item Vickrey–English–Dutch auctions,"
Games and Economic Behavior,
Elsevier, vol. 81(C), pages 116-129.
- Kelso, Alexander S, Jr & Crawford, Vincent P, 1982. "Job Matching, Coalition Formation, and Gross Substitutes," Econometrica, Econometric Society, vol. 50(6), pages 1483-1504, November.
- Gabrielle Demange & David Gale, 1985.
"The Strategy Structure of Two Sided Matching Markets,"
- Demange, Gabrielle & Gale, David, 1985. "The Strategy Structure of Two-sided Matching Markets," Econometrica, Econometric Society, vol. 53(4), pages 873-88, July.
- T. Andersson & C. Andersson & A. Talman, 2013. "Sets in excess demand in simple ascending auctions with unit-demand bidders," Annals of Operations Research, Springer, vol. 211(1), pages 27-36, December.
- Bettina Klaus & Alexandru Nichifor, 2010. "Consistency in one-sided assignment problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 35(3), pages 415-433, September.
- Pierre-André Chiappori & Alfred Galichon & Bernard Salanié, 2014.
"The Roommate Problem - Is More Stable Than You Think,"
CESifo Working Paper Series
4676, CESifo Group Munich.
- Pierre-André Chiappori & Alfred Galichon & Bernard Salanié, 2012. "The Roommate Problem is More Stable than You Think," Sciences Po publications info:hdl:2441/3sd5loegec9, Sciences Po.
- Sun, Ning & Yang, Zaifu, 2003. "A general strategy proof fair allocation mechanism," Economics Letters, Elsevier, vol. 81(1), pages 73-79, October.
- Johan Karlander & Kimmo Eriksson, 2001. "Stable outcomes of the roommate game with transferable utility," International Journal of Game Theory, Springer;Game Theory Society, vol. 29(4), pages 555-569.
- Crawford, Vincent P & Knoer, Elsie Marie, 1981. "Job Matching with Heterogeneous Firms and Workers," Econometrica, Econometric Society, vol. 49(2), pages 437-50, March.
- Qin, Cheng-Zhong, 1996. "Endogenous Formation of Cooperation Structures," Journal of Economic Theory, Elsevier, vol. 69(1), pages 218-226, April.
- Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
- Gabrielle Demange & Gale David & Marilda Sotomayor, 1986.
- Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
- Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
When requesting a correction, please mention this item's handle: RePEc:hhs:lunewp:2013_002. 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: (David Edgerton)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.