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A characterization of absorbing sets in coalition formation games

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  • Bonifacio, A.G.
  • Inarra, E.
  • Neme, P.

Abstract

Given a standard myopic process in a coalition formation game, an absorbing set is a minimal collection of coalition structures that is never left once entered through this process. Absorbing sets are an important solution concept in coalition formation games, but they have drawbacks: they can be large and hard to obtain. In this paper, we characterize an absorbing set in terms of a collection consisting of a small number of sets of coalitions that we refer to as a “reduced form” of a game. We apply our characterization to study convergence to stability in several economic environments.

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  • Bonifacio, A.G. & Inarra, E. & Neme, P., 2024. "A characterization of absorbing sets in coalition formation games," Games and Economic Behavior, Elsevier, vol. 148(C), pages 1-22.
    • Handle: RePEc:eee:gamebe:v:148:y:2024:i:c:p:1-22
    DOI: 10.1016/j.geb.2024.08.014
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    More about this item

    Keywords

    Coalition formation; Absorbing set; Reduced form of a game; Convergence to stability;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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