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Coalition Formation and Stability

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Working paper
Jose Alcalde and Antonio Romero-Medina
This paper studies a class of NTU coalition formation game in which every player's payo® depends only on the members of her coalition. We provide three conditions under which the core of such games is non-empty. The three properties identified are called Union Responsiveness, Intersection Responsiveness, and Essentiality. All three are restrictions on individuals' preferences and stable allocations always exist under each of them.
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