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: |
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
More information through EDIRC
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.:
- Qin, Cheng-Zhong, 1996. "Endogenous Formation of Cooperation Structures," Journal of Economic Theory, Elsevier, vol. 69(1), pages 218-226, April.
- 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.
- 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.
- 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.
- Demange, Gabrielle & Gale, David, 1985.
"The Strategy Structure of Two-sided Matching Markets,"
Econometric Society, vol. 53(4), pages 873-88, July.
- Gabrielle Demange & David Gale, 1985. "The Strategy Structure of Two Sided Matching Markets," Post-Print halshs-00670994, HAL.
- Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
- Bettina Klaus & Alexandru Nichifor, 2010. "Consistency in one-sided assignment problems," Social Choice and Welfare, Springer, vol. 35(3), pages 415-433, September.
- 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..
- Andersson, Tommy & Erlanson, Albin, 2012.
"Multi-Item Vickery-English-Dutch Auctions,"
2012:17, Lund University, Department of Economics, revised 15 Jan 2013.
- 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.
- Andersson, Tommy & Svensson, Lars-Gunnar, 2006. "Non-manipulable Assignment of Individuals to Positions Revisited," Working Papers 2006:11, Lund University, Department of Economics, revised 12 Apr 2007.
- Sun, Ning & Yang, Zaifu, 2003. "A general strategy proof fair allocation mechanism," Economics Letters, Elsevier, vol. 81(1), pages 73-79, October.
- 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.
- Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
- Demange, Gabrielle & Gale, David & Sotomayor, Marilda, 1986.
Journal of Political Economy,
University of Chicago Press, vol. 94(4), pages 863-72, August.
- Johan Karlander & Kimmo Eriksson, 2001. "Stable outcomes of the roommate game with transferable utility," International Journal of Game Theory, Springer, vol. 29(4), pages 555-569.
- Talman, Dolf & Yang, Zaifu, 2011.
"A model of partnership formation,"
Journal of Mathematical Economics,
Elsevier, vol. 47(2), pages 206-212, March.
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 references are entirely missing, you can add them using this form.