Stationary Consistent Equilibrium Coalition Structures Constitute the Recursive Core
Data
30.08.2009
30.08.2009
Autori
László Á. Kóczy
Codice JEL
C71, C72
C71, C72
Parole chiave:
Partition Function, Externalities, Implementation, Recursive Core, Stationary Perfect Equilibrium, Time Consistent Equilibrium
Partition Function, Externalities, Implementation, Recursive Core, Stationary Perfect Equilibrium, Time Consistent Equilibrium
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
We study coalitional games where the proceeds from cooperation depend on the entire coalition structure. The coalition structure core (Kóczy, 2007) is a generalisation of the coalition structure core for such games. We introduce a noncooperative, sequential coalition formation model and show that the set of equilibrium outcomes coincides with the recursive core. In order to extend past results to games that are not totally balanced (understood in this special setting) we introduce subgame-consistency that requires perfectness in relevant subgames only, while subgames that are never reached are ignored.