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A recursive core for cooperative games with overlapping coalitions

Author

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  • Messan Agbaglah

    () (Département d'économique, Université de Sherbrooke)

Abstract

This paper develops an extension of the recursive core to the setting of overlapping coalitions. We show that the cooperative game theoretical traditional way of separating a deviant coalition from the game played by the ones left behind is no more satisfactory. We therefore introduce a new paradigm with which we obtain the overlapping coalition structure core whose allocations are Pareto-efficient.

Suggested Citation

  • Messan Agbaglah, 2014. "A recursive core for cooperative games with overlapping coalitions," Cahiers de recherche 14-07, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  • Handle: RePEc:shr:wpaper:14-07
    as

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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1407.pdf
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    References listed on IDEAS

    as
    1. Ray, Debraj, 2007. "A Game-Theoretic Perspective on Coalition Formation," OUP Catalogue, Oxford University Press, number 9780199207954.
    2. Henry Tulkens & Parkash Chander, 1997. "The Core of an Economy with Multilateral Environmental Externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 26(3), pages 379-401.
    3. Albizuri, M.J. & Aurrecoechea, J. & Zarzuelo, J.M., 2006. "Configuration values: Extensions of the coalitional Owen value," Games and Economic Behavior, Elsevier, vol. 57(1), pages 1-17, October.
    4. Messan Agbaglah, 2017. "Overlapping coalitions, bargaining and networks," Theory and Decision, Springer, vol. 82(3), pages 435-459, March.
    5. 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.
    6. Huang, Chen-Ying & Sjostrom, Tomas, 2003. "Consistent solutions for cooperative games with externalities," Games and Economic Behavior, Elsevier, vol. 43(2), pages 196-213, May.
    7. 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.
    8. Siddhartha Bandyopadhyay & Kalyan Chatterjee, 2006. "Coalition Theory and its Applications: A Survey," Economic Journal, Royal Economic Society, vol. 116(509), pages 136-155, February.
    9. Hafalir, Isa E., 2007. "Efficiency in coalition games with externalities," Games and Economic Behavior, Elsevier, vol. 61(2), pages 242-258, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Overlapping coalitions; Cover function game; Recursive core; Residual game; Optimistic; Pessimistic; Efficiency.;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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