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Overlapping coalitions, bargaining and networks

  • Messan Agbaglah

    ()

    (Département d'économique, Université de Sherbrooke)

We introduce the game in cover function form, which is a bargaining game of sequential offers for endogenous overlapping coalitions. This extension of games in partition function form removes the restriction to disjoint coalitions. We discuss the existence of equilibria, and we develop an algorithm to compute equilibrium outcomes, under some conditions. We define the key properties that overlapping coalition structures must verify to uniquely identify networks. We show that each network is defined as an equilibrium outcome of a game in cover function form. Our results bridge the two strands of literature devoted to the formation networks and coalitions.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1402.pdf
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Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 14-02.

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Length: 34 pages
Date of creation: Mar 2014
Date of revision:
Handle: RePEc:shr:wpaper:14-02
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  13. Ray, Debraj, 2007. "A Game-Theoretic Perspective on Coalition Formation," OUP Catalogue, Oxford University Press, number 9780199207954, March.
  14. Chatterjee, Kalyan & Bhaskar Dutta & Debraj Ray & Kunal Sengupta, 1993. "A Noncooperative Theory of Coalitional Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 463-77, April.
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  17. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
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