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An Algorithm for Stable and Equitable Coalition Structures with Public Goods

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  • Fan-chin Kung

    (City University of Hong Kong & Academia Sinica)

Abstract

We study the formation of coalitions that provide public goods to members. Individuals are linked on a tree graph and those with similar preferences are connected on the tree. We present a solution that selects allocations belonging to the coalition structure core and that are also envy-free.

Suggested Citation

  • Fan-chin Kung, 2004. "An Algorithm for Stable and Equitable Coalition Structures with Public Goods," Game Theory and Information 0409007, University Library of Munich, Germany, revised 21 Jun 2005.
  • Handle: RePEc:wpa:wuwpga:0409007
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    References listed on IDEAS

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    1. Grandmont, Jean-Michel, 1978. "Intermediate Preferences and the Majority Rule," Econometrica, Econometric Society, vol. 46(2), pages 317-330, March.
    2. Demange, Gabrielle, 1994. "Intermediate preferences and stable coalition structures," Journal of Mathematical Economics, Elsevier, vol. 23(1), pages 45-58, January.
    3. Fan-chin Kung, 2005. "Formation of Collective Decision-Making Units: Stability and a Solution," Game Theory and Information 0505002, University Library of Munich, Germany, revised 21 Jun 2005.
    4. Herbert E. Scarf, 1965. "The Core of an N Person Game," Cowles Foundation Discussion Papers 182R, Cowles Foundation for Research in Economics, Yale University.
    5. Gans, Joshua S. & Smart, Michael, 1996. "Majority voting with single-crossing preferences," Journal of Public Economics, Elsevier, vol. 59(2), pages 219-237, February.
    6. Conley, John P. & Wooders, Myrna H., 1997. "Equivalence of the Core and Competitive Equilibrium in a Tiebout Economy with Crowding Types," Journal of Urban Economics, Elsevier, vol. 41(3), pages 421-440, May.
    7. Wooders, Myrna, 1980. "The Tiebout Hypothesis: Near Optimality in Local Public Good Economies," Econometrica, Econometric Society, vol. 48(6), pages 1467-1485, September.
    8. Guesnerie, Roger & Oddou, Claude, 1981. "Second best taxation as a game," Journal of Economic Theory, Elsevier, vol. 25(1), pages 67-91, August.
    9. Greenberg Joseph & Weber Shlomo, 1993. "Stable Coalition Structures with a Unidimensional Set of Alternatives," Journal of Economic Theory, Elsevier, vol. 60(1), pages 62-82, June.
    10. Le Breton, M & Owen, G & Weber, S, 1992. "Strongly Balanced Cooperative Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 20(4), pages 419-427.
    11. Tadenuma, Koichi & Thomson, William, 1991. "No-Envy and Consistency in Economies with Indivisible Goods," Econometrica, Econometric Society, vol. 59(6), pages 1755-1767, November.
    12. Westhoff, Frank, 1977. "Existence of equilibria in economies with a local public good," Journal of Economic Theory, Elsevier, vol. 14(1), pages 84-112, February.
    13. Kaneko, Mamoru & Wooders, Myrna Holtz, 1982. "Cores of partitioning games," Mathematical Social Sciences, Elsevier, vol. 3(4), pages 313-327, December.
    14. Greenberg, J. & Weber, S., 1991. "Stable Coalition Structures with Unidimensional Set of Alternatives," Papers 9133, Tilburg - Center for Economic Research.
    15. Bewley, Truman F, 1981. "A Critique of Tiebout's Theory of Local Public Expenditures," Econometrica, Econometric Society, vol. 49(3), pages 713-740, May.
    16. Conley, John P. & Wooders, Myrna, 1996. "Taste-homogeneity of optimal jurisdictions in a Tiebout economy with crowding types and endogenous educational investment choices," Ricerche Economiche, Elsevier, vol. 50(4), pages 367-387, December.
    17. Wooders, Myrna, 1978. "Equilibria, the core, and jurisdiction structures in economies with a local public good," Journal of Economic Theory, Elsevier, vol. 18(2), pages 328-348, August.
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    Citations

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    Cited by:

    1. Saporiti, Alejandro, 2009. "Strategy-proofness and single-crossing," Theoretical Economics, Econometric Society, vol. 4(2), June.
    2. Francesco Ciardiello & Crescenzio Gallo, 2009. "A Graph-Traversing Algorithm for Computing Some Stable Sets in Effectiveness Coalitional Games," Quaderni DSEMS 08-2009, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    3. Roy, Souvik & Sadhukhan, Soumyarup, 2017. "A Unified Characterization of Randomized Strategy-proof Rules," MPRA Paper 79363, University Library of Munich, Germany.
    4. Achuthankutty, Gopakumar & Roy, Souvik, 2017. "On Top-connected Single-peaked and Partially Single-peaked Domains," MPRA Paper 78102, University Library of Munich, Germany.
    5. Fan-chin Kung, 2013. "Public Good Coalitions and Membership Exclusion," Economics Bulletin, AccessEcon, vol. 33(2), pages 1390-1395.
    6. Robert Bredereck & Jiehua Chen & Gerhard Woeginger, 2013. "A characterization of the single-crossing domain," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 989-998, October.
    7. Achuthankutty, Gopakumar & Roy, Souvik, 2017. "On Single-peaked Domains and Min-max Rules," MPRA Paper 81375, University Library of Munich, Germany.
    8. Alejandro Saporiti, 2006. "Strategic voting on single-crossing domains," The School of Economics Discussion Paper Series 0617, Economics, The University of Manchester.
    9. Jiehua Chen & Kirk R. Pruhs & Gerhard J. Woeginger, 2017. "The one-dimensional Euclidean domain: finitely many obstructions are not enough," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(2), pages 409-432, February.
    10. Fan-Chin Kung, 2015. "Sorting out single-crossing preferences on networks," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(3), pages 663-672, March.

    More about this item

    Keywords

    Coalition formation; coalition structure core; envy-free; public goods; mechanism design;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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