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Inducing stability in hedonic games

Author

Listed:
  • Dinko Dimitrov

    (Saarland University)

  • Emiliya A. Lazarova

    (University of East Anglia)

  • Shao-Chin Sung

    (Aoyama Gakuin University)

Abstract

In many applications of coalition formation games, a key issue is that some desirable coalition structures are not elements of the core of these games. In these cases, it would be useful for an authority which aims to implement a certain outcome to know how far from the original game is the nearest game where the desirable outcome is part of the core. This question is at the center of this study. Focusing on hedonic games, we uncover previously unexplored links between such games and transferrable utility games, and develop a tailor-made so- lution concept for the transferrable utility game, the implementation core, to provide an answer to our question.

Suggested Citation

  • Dinko Dimitrov & Emiliya A. Lazarova & Shao-Chin Sung, 2016. "Inducing stability in hedonic games," University of East Anglia School of Economics Working Paper Series 2016-09, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:ueaeco:2016_09
    as

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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • 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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