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Link Formation in Cooperative Situations

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Author Info
Dutta, B.
Nouweland, A. van den
Tijs, S. (Tilburg University, Center for Economic Research)

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Abstract

In this paper we study the endogenous formation of cooperation structures or communication graphs between players in a superadditive TU game. For each cooperation structure that is formed, the payoffs to the players are determined by an exogenously given solution. We model the process of cooperation structure formation as a game in strategic form. It is shown that several equilibrium refinements predict the formation of the complete cooperation structure or some structure which is payoff-equivalent to the complete structure. These results are obtained for a large class of solutions for cooperative games with cooperation structures. A by-product of our analysis is a characterization of the class of weighted Myerson values.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 35.

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Date of creation: 1995
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Handle: RePEc:dgr:kubcen:199535

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Perry, M. & Rany, P., 1992. "A Non-Cooperative View of Coalition Formation and the Core," UWO Department of Economics Working Papers 9203, University of Western Ontario, Department of Economics.
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  2. Chatterjee, Kalyan & Bhaskar Dutta & Debraj Ray & Kunal Sengupta, 1993. "A Noncooperative Theory of Coalitional Bargaining," Review of Economic Studies, Blackwell Publishing, vol. 60(2), pages 463-77, April. [Downloadable!] (restricted)
  3. Gul, Faruk, 1989. "Bargaining Foundations of Shapley Value," Econometrica, Econometric Society, vol. 57(1), pages 81-95, January. [Downloadable!] (restricted)
  4. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July. [Downloadable!] (restricted)
  5. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January. [Downloadable!] (restricted)
  6. Sengupta, Abhijit & Sengupta, Kunal, 1994. "Viable Proposals," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 347-59, May. [Downloadable!] (restricted)
  7. Matthew O. Jackson & Asher Wolinsky, 1994. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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  8. Dutta, Bhaskar & Ray, Debraj, 1989. "A Concept of Egalitarianism under Participation Constraints," Econometrica, Econometric Society, vol. 57(3), pages 615-35, May. [Downloadable!] (restricted)
  9. Ehud Kalai & Dov Samet, 1983. "On Weighted Shapley Values," Discussion Papers 602, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  10. Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June. [Downloadable!] (restricted)
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