Overlapping Coalitions, Bargaining and Networks
Messan Agbaglah, Lars Ehlers
C71, C72, C78, D62, D85
Overlapping Coalitions, Cover Function, Bargaining, Symmetric Game, Network
Climate Change and Sustainable Development
This paper extends the theory of endogenous coalition formation, with complete information and transferable utility, to the overlapping case. We propose a cover function bargaining game which allows the formation of overlapping coalitions at equilibrium. We show the existence of subgame perfect equilibrium and provide an algorithm to compute this equilibrium in the symmetric case. As an application, we establish an interesting link with the formation of networks.