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Home > Formation of coalition structures as a non-cooperative game

Formation of coalition structures as a non-cooperative game

Working paper
Author/s: 
Dmitry Levando
Issue number: 
2017.15
Series: 
Documents de travail du Centre d'Economie de la Sorbonne
Publisher: 
Centre d'Economie de la Sorbonne
Year: 
2017
Working paper [1]
The paper defines a family of nested non-cooperative simultaneous finite games to study coalition structure formation with intra and inter-coalition externalities. Every game has two outcomes - an allocation of players over coalitions and a payoff profile for every player. Every game in the family has an equilibrium in mixed strategies. The equilibrium can generate more than one coalition with a presence of intra and inter group externalities. These properties make it different from the Shapley value, strong Nash, coalition-proof equilibrium, core, kernel, nucleolus. The paper demonstrates some applications: non-cooperative cooperation, Bayesian game, stochastic games and construction of a non-cooperative criterion of coalition structure stability for studying focal points. An example demonstrates that a payoff profile in the Prisoners' Dilemma is non-informative to deduce a cooperation of players.
Tags: 
Game Theory & Graphs [2]
Network Games [3]

Source URL:http://coalitiontheory.net/content/formation-coalition-structures-non-cooperative-game

Links
[1] ftp://mse.univ-paris1.fr/pub/mse/CES2017/17015.pdf [2] http://coalitiontheory.net/research-areas/game-theory-graphs [3] http://coalitiontheory.net/research-areas/network-games