Farsightedness and Cautiousness in Coalition Formation
Data
01.01.2003
01.01.2003
Autori
Vincent Vannetelbosch, Ana Mauleon
Codice JEL
C70,C71,C72,C78
C70,C71,C72,C78
Parole chiave:
Coalition formation,Farsightedness,Cautiousness,Positive spillovers,Largest consistent set
Coalition formation,Farsightedness,Cautiousness,Positive spillovers,Largest consistent set
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
We adopt the largest consistent set defined by Chwe [J. of Econ. Theory 63 (1994), 299-235] to predict which coalition structures are possibly stable when players are farsighted. We also introduce a refinement, the largest cautious consistent set, based on the assumption that players are cautious. For games with positive spillovers, many coalition structures may belong to the largest consistent set. The grand coalition, which is the efficient coalition structure, always belongs to the largest consistent set and is the unique one to belong to the largest cautious consistent set.