The Core of Games with Stackelberg Leaders
This paper considers cooperative game theoretic settings in which forming coalitions can act as Stackelberg leaders. We de�fine a value function which modi�fies the gamma-value function (Hart & Kurz, 1983, Chander & Tulkens, 1997) by letting members of deviating coalitions move �first in choosing a coordinated strategy. We accordingly defi�ne what we call the phi-core, and characterize the phi-core allocations of a cartel formation game and of a public goods economy.
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| Date of creation: | May 1998 |
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| Handle: | RePEc:pra:mprapa:22139 |
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- Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
- Rajan, Roby, 1989. "Endogenous Coalition Formation in Cooperative Oligopolies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(4), pages 863-76, November.
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