Stable Partitions in a Model with Group-Dependent Feasible Sets
In this paper we consider a model of group formation where group of individuals may have different feasible sets. We focus on two polar cases, increasing returns, when the set of feasible alternatives increases if a new member joins thegroup, and decreasing returns, when a new member has an opposite effect and reduces the number of alternatives available for the enlarged group. We consider two notions, stability and strong stability of group structures, that correspond to Nash and Strong Nash equilibrium of the associated non-cooperative game. We prove existence results for various classes of environments and also investigate the link between the dimensionality of the set of alternatives and the existence of stable structures.
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- Le Breton, M & Owen, G & Weber, S, 1992.
"Strongly Balanced Cooperative Games,"
International Journal of Game Theory,
Springer;Game Theory Society, vol. 20(4), pages 419-427.
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- Le Breton, M. & Owen, G. & Weber, S., 1991. "Strongly Balanced Cooperative Games," Papers 92-3, York (Canada) - Department of Economics.
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- Maurice Salles, 2005. "Social Choice," Post-Print halshs-00337075, HAL.
- Le Breton, M, 1989. "A Note on Balancedness and Nonemptiness of the Core in Voting Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 18(1), pages 111-117. Full references (including those not matched with items on IDEAS)
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