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Farsighted Coalitional Stability


  • Michael Suk-Young Chwe

    (University of Chicago, Department of Economic)


I define the largest consistent set, a solution concept which applies to situations in which coalitions freely form but cannot make binding contracts, act publicly, and are fully ``farsighted'' in that a coalition considers the possibility that once it acts, another coalition might react, a third coalition might in turn react, and so on, without limit. I establish weak nonemptiness conditions and apply it to strategic and coalitional form games and majority rule voting. I argue that it improves on the von Neumann- Morgenstern stable set as it is usually defined but is consistent with a generalization of the stable set as in the theory of social situations.

Suggested Citation

  • Michael Suk-Young Chwe, 1993. "Farsighted Coalitional Stability," Working Papers _001, University of Chicago, Department of Economics.
  • Handle: RePEc:wop:chicec:_001

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    References listed on IDEAS

    1. Moulin, H. & Peleg, B., 1982. "Cores of effectivity functions and implementation theory," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 115-145, June.
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    8. repec:dau:papers:123456789/13220 is not listed on IDEAS
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    More about this item


    farsighted; coalition;

    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


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