The Gamma-Core and Coalition Formation
Data
01.01.2003
01.01.2003
Autori
Parkash Chander
Codice JEL
C71,C72,D62
C71,C72,D62
Parole chiave:
Core,Characteristic function,Strategic games,Coalition formation
Core,Characteristic function,Strategic games,Coalition formation
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
This paper reinterprets the ã -core (Chander and Tulkens (1995, 1997)) and justifies it as well as its prediction that the efficient coalition structure is stable in terms of the coalition formation theory. It is assumed that coalitions can freely merge or break apart, are farsighted (that is, it is the final and not the immediate payoffs that matter to the coalitions) and a coalition may deviate if and only if it stands to gain from it. It is then shown that subsequent to a deviation by a coalition, the nonmembers will have incentives to break apart into singletons, as is assumed in the definition of the ã – characteristic function, and that the grand coalition is the only stable coalition structure.