IDEAS home Printed from https://ideas.repec.org/a/spr/dyngam/v13y2023i2d10.1007_s13235-022-00474-8.html
   My bibliography  Save this article

Farsighted Rationality in Hedonic Games

Author

Listed:
  • G.-Herman Demeze-Jouatsa

    (Bielefeld University)

  • Dominik Karos

    (Bielefeld University)

Abstract

We consider a hedonic coalition formation game in which a coalition chooses for each partition of the player set the probability with which it forms and thereby destroys the current partition. These probabilities are commonly known so that farsighted players know at every partition what future partitions, and hence payoffs, will be reached with what probability. Thus, players can make rational decisions about the moves they support. We show that if coalitions make mistakes with small but positive probability, then there is a behavior profile in which no coalition has a profitable one-shot deviation.

Suggested Citation

  • G.-Herman Demeze-Jouatsa & Dominik Karos, 2023. "Farsighted Rationality in Hedonic Games," Dynamic Games and Applications, Springer, vol. 13(2), pages 462-479, June.
    • Handle: RePEc:spr:dyngam:v:13:y:2023:i:2:d:10.1007_s13235-022-00474-8
    DOI: 10.1007/s13235-022-00474-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13235-022-00474-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13235-022-00474-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bloch, Francis & van den Nouweland, Anne, 2020. "Farsighted stability with heterogeneous expectations," Games and Economic Behavior, Elsevier, vol. 121(C), pages 32-54.
    2. Atay, Ata & Mauleon, Ana & Vannetelbosch, Vincent, 2021. "A bargaining set for roommate problems," Journal of Mathematical Economics, Elsevier, vol. 94(C).
    3. Hirata, Daisuke & Kasuya, Yusuke & Tomoeda, Kentaro, 2021. "Stability against robust deviations in the roommate problem," Games and Economic Behavior, Elsevier, vol. 130(C), pages 474-498.
    4. John C. Harsanyi, 1974. "An Equilibrium-Point Interpretation of Stable Sets and a Proposed Alternative Definition," Management Science, INFORMS, vol. 20(11), pages 1472-1495, July.
    5. Debraj Ray & Rajiv Vohra, 2015. "The Farsighted Stable Set," Econometrica, Econometric Society, vol. 83(3), pages 977-1011, May.
    6. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-1064, July.
    7. Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May.
    8. Effrosyni Diamantoudi & Licun Xue, 2003. "Farsighted stability in hedonic games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 21(1), pages 39-61, August.
    9. Lloyd S. Shapley, 1967. "On balanced sets and cores," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 14(4), pages 453-460.
    10. Kimya, Mert, 2020. "Equilibrium coalitional behavior," Theoretical Economics, Econometric Society, vol. 15(2), May.
    11. Karos, Dominik & Robles, Laura, 2021. "Full farsighted rationality," Games and Economic Behavior, Elsevier, vol. 130(C), pages 409-424.
    12. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Demeze-Jouatsa, Ghislain-Herman & Karos, Dominik, 2021. "Farsighted Rationality in Hedonic Games," Center for Mathematical Economics Working Papers 654, Center for Mathematical Economics, Bielefeld University.
    2. Mert Kimya, 2024. "Power, Status and the Stability of Hierarchies," Working Papers 2024-04, University of Sydney, School of Economics.
    3. Mert Kimya, 2023. "Coalition Formation Under Dominance Invariance," Dynamic Games and Applications, Springer, vol. 13(2), pages 480-496, June.
    4. P. Jean-Jacques Herings & Ana Mauleon & Vincent Vannetelbosch, 2023. "Social Rationalizability with Mediation," Dynamic Games and Applications, Springer, vol. 13(2), pages 440-461, June.
    5. Kenzo Imamura & Hideo Konishi, 2023. "Assortative Matching with Externalities and Farsighted Agents," Dynamic Games and Applications, Springer, vol. 13(2), pages 497-509, June.
    6. Atay, Ata & Mauleon, Ana & Vannetelbosch, Vincent, 2021. "A bargaining set for roommate problems," Journal of Mathematical Economics, Elsevier, vol. 94(C).
    7. Hirata, Daisuke & Kasuya, Yusuke & Tomoeda, Kentaro, 2021. "Stability against robust deviations in the roommate problem," Games and Economic Behavior, Elsevier, vol. 130(C), pages 474-498.
    8. Takaaki Abe, 2018. "Stable coalition structures in symmetric majority games: a coincidence between myopia and farsightedness," Theory and Decision, Springer, vol. 85(3), pages 353-374, October.
    9. Kimya, Mert, 2022. "Farsighted objections and maximality in one-to-one matching problems," Journal of Economic Theory, Elsevier, vol. 204(C).
    10. Herings, P. Jean-Jacques & Mauleon, Ana & Vannetelbosch, Vincent, 2020. "Matching with myopic and farsighted players," Journal of Economic Theory, Elsevier, vol. 190(C).
    11. Imamura, Kenzo & Konishi, Hideo & Pan, Chen-Yu, 2023. "Stability in matching with externalities: Pairs competition and oligopolistic joint ventures," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 270-286.
    12. Ray, Debraj & Vohra, Rajiv, 2015. "Coalition Formation," Handbook of Game Theory with Economic Applications,, Elsevier.
    13. Hirai, Toshiyuki & Watanabe, Naoki & Muto, Shigeo, 2019. "Farsighted stability in patent licensing: An abstract game approach," Games and Economic Behavior, Elsevier, vol. 118(C), pages 141-160.
    14. Barbera, Salvador & Gerber, Anke, 2003. "Corrigendum to "On coalition formation: durable coalition structures": [Mathematical Social Sciences 45 (2003) 185-203]," Mathematical Social Sciences, Elsevier, vol. 46(3), pages 355-356, December.
    15. Kimya, Mert, 2020. "Farsighted Objections and Maximality in One-to-one Matching Problems," Working Papers 202014, University of Sydney, School of Economics, revised Jul 2021.
    16. Kimya, Mert, 2020. "Farsighted Objections and Maximality in One-to-one Matching Problems," Working Papers 2020-14, University of Sydney, School of Economics.
    17. Jean-Jacques Herings, P. & Mauleon, Ana & Vannetelbosch, Vincent, 2017. "Stable sets in matching problems with coalitional sovereignty and path dominance," Journal of Mathematical Economics, Elsevier, vol. 71(C), pages 14-19.
    18. Diamantoudi, Effrosyni & Xue, Licun, 2007. "Coalitions, agreements and efficiency," Journal of Economic Theory, Elsevier, vol. 136(1), pages 105-125, September.
    19. Kimya, Mert, 2021. "Coalition Formation Under Dominance Invariance," Working Papers 202106, University of Sydney, School of Economics.
    20. Pongou, Roland & Tondji, Jean-Baptiste, 2024. "The reciprocity set," Journal of Mathematical Economics, Elsevier, vol. 112(C).

    More about this item

    Keywords

    Abstract games; Hedonic games; Farsighted stability; Coalition stable equilibrium;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:dyngam:v:13:y:2023:i:2:d:10.1007_s13235-022-00474-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.