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Status-Seeking in Hedonic Games with Heterogeneous Players

Working paper
Author/s: 
Emiliya Lazarova and Dinko Dimitrov
Issue number: 
2010.122
Publisher: 
FEEM
Year: 
2010
PDF [1]
We study hedonic games with heterogeneous player types that reflect her nationality, ethnic background, or skill type. Agents' preferences are dictated by status-seeking where status can be either local or global. The two dimensions of status define the two components of a generalized constant elasticity of substitution utility function. In this setting, we characterize the core as a function of the utility's parameter values and show that in all cases the corresponding cores are non-empty. We further discuss the core stable outcomes in terms of their segregating versus integrating properties.

Source URL:http://coalitiontheory.net/content/status-seeking-hedonic-games-heterogeneous-players

Links
[1] http://www.feem.it/userfiles/attach/20109271223254NDL2010-122.pdf