A New Class of Welfare Maximizing Stable Sharing Rules for Partition Function Games with Externalities
We propose a class of sharing rules for the distribution of the gains from cooperation for partition function games with externalities. We show that this class of sharing rules is characterized by three axioms: coalitional efficiency, additivity and anonimity which are adapted to the context of partition function games. The sharing rules stabilize, in the sense of d'Aspremont et al. (1983), the coalition which generates the highest global welfare among the set of potentially internally stable coalitions. The new class of sharing rules is particularly powerful for economic problems that are characterized by positive externalities from coalition formation (outsiders benefit from the expansion of the coalition) and which therefore often suffer from free-riding.
|Date of creation:||Jul 2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://research.hubrussel.be|
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.:
- Kolpin, Van, 1996. "Multi-Product Serial Cost Sharing: An Incompatibility with the Additivity Axiom," Journal of Economic Theory, Elsevier, vol. 69(1), pages 227-233, April.
- Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, vol. 20(2), pages 201-237, August.
- Ray, D. & Vohra, R., 1996.
"A Theory of Endogenous Coalition Structure,"
68, Boston University - Industry Studies Programme.
- Michel Grabisch & Yukihiko Funaki, 2011.
"A coalition formation value for games with externalities,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Michel Grabisch & Yukihiko Funaki, 2008. "A coalition formation value for games with externalities," Documents de travail du Centre d'Economie de la Sorbonne b08076, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Sang-Seung, Yi, 1996. "Endogenous formation of customs unions under imperfect competition: open regionalism is good," Journal of International Economics, Elsevier, vol. 41(1-2), pages 153-177, August.
- Serrano, Roberto & Clippel, Geoffroy de, 2005.
"Marginal contributions and externalities in the value,"
UC3M Working papers. Economics
we057339, Universidad Carlos III de Madrid. Departamento de Economía.
- Geoffroy de Clippel & Roberto Serrano, 2008. "Marginal Contributions and Externalities in the Value," Econometrica, Econometric Society, vol. 76(6), pages 1413-1436, November.
- Geoffroy de Clippel & Roberto Serrano, 2007. "Marginal contributions and externalities in the value," Working Papers 2007-04, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Geoffroy de Clippel & Roberto Serrano, 2005. "Marginal Contributions and Externalities in the Value," Working Papers 2005-11, Brown University, Department of Economics.
- Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983.
"On the Stability of Collusive Price Leadership,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 16(1), pages 17-25, February.
- Matthew McGinty, 2007. "International environmental agreements among asymmetric nations," Oxford Economic Papers, Oxford University Press, vol. 59(1), pages 45-62, January.
- Sandler,Todd, 2004.
"Global Collective Action,"
Cambridge University Press, number 9780521834773, Junio.
- Hans-Peter Weikard, 2009.
"Cartel Stability Under An Optimal Sharing Rule,"
University of Manchester, vol. 77(5), pages 575-593, 09.
- Hans-Peter Weikard & Michael Finus & Juan-Carlos Altamirano-Cabrera, 2006.
"The impact of surplus sharing on the stability of international climate agreements,"
Oxford Economic Papers,
Oxford University Press, vol. 58(2), pages 209-232, April.
- Hans-Peter Weikard & Juan-Carlos Altamirano-Cabrera & Michael Finus, 2004. "The Impact of Surplus Sharing on The Stability of International Climate Agreements," Working Papers 2004.99, Fondazione Eni Enrico Mattei.
- Marion Kohler, 1999.
"Coalition formation in international monetary policy games,"
Bank of England working papers
92, Bank of England.
- Kohler, Marion, 2002. "Coalition formation in international monetary policy games," Journal of International Economics, Elsevier, vol. 56(2), pages 371-385, March.
- Yi, Sang-Seung & Shin, Hyukseung, 2000. "Endogenous formation of research coalitions with spillovers," International Journal of Industrial Organization, Elsevier, vol. 18(2), pages 229-256, February.
- Fuentes Albero Cristina & Rubio Jorge Santiago J., 2008.
"Can International Environmental Cooperation Be Bought?,"
2010101, Fundacion BBVA / BBVA Foundation.
- Fuentes-Albero, Cristina & Rubio, Santiago J., 2010. "Can international environmental cooperation be bought?," European Journal of Operational Research, Elsevier, vol. 202(1), pages 255-264, April.
- Poyago-Theotoky, Joanna, 1995. "Equilibrium and Optimal Size of a Research Joint Venture in an Oligopoly with Spillovers," Journal of Industrial Economics, Wiley Blackwell, vol. 43(2), pages 209-26, June.
- Macho-Stadler, Ines & Perez-Castrillo, David & Wettstein, David, 2007. "Sharing the surplus: An extension of the Shapley value for environments with externalities," Journal of Economic Theory, Elsevier, vol. 135(1), pages 339-356, July.
- Maarten F. Cornet, 2003. "Partition function bargaining with public demands," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(4), pages 845-862, November.
- Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 185-199.
- Bolger, E M, 1989. "A Set of Axioms for a Value for Partition Function Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 18(1), pages 37-44.
- René Brink & Yukihiko Funaki, 2009. "Axiomatizations of a Class of Equal Surplus Sharing Solutions for TU-Games," Theory and Decision, Springer, vol. 67(3), pages 303-340, September.
- Debraj Ray & Rajiv Vohra, 2001. "Coalitional Power and Public Goods," Journal of Political Economy, University of Chicago Press, vol. 109(6), pages 1355-1384, December.
When requesting a correction, please mention this item's handle: RePEc:hub:wpecon:201108. 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: (Sabine Janssens)
If references are entirely missing, you can add them using this form.