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Hedonic coalition formation games with variable populations: core characterizations and (im)possibilities

Author

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  • Mehmet Karakaya

    (İzmir Kâtip Çelebi University)

  • Bettina Klaus

    (University of Lausanne)

Abstract

We consider hedonic coalition formation games with variable sets of agents and extend the properties competition sensitivity and resource sensitivity (introduced by Klaus, Games Econ Behav 72:172–186, 2011, for roommate markets) to hedonic coalition formation games. Then, we show that on the domain of solvable hedonic coalition formation games, the Core is characterized by coalitional unanimity and Maskin monotonicity (see also Takamiya, Maskin monotonic coalition formation rules respecting group rights. Niigata University, Mimeo, 2010, Theorem 1). Next, we characterize the Core for solvable hedonic coalition formation games by unanimity, Maskin monotonicity, and either competition sensitivity or resource sensitivity (Corollary 2). Finally, and in contrast to roommate markets, we show that on the domain of solvable hedonic coalition formation games, there exists a solution not equal to the Core that satisfies coalitional unanimity, consistency, competition sensitivity, and resource sensitivity (Example 2).

Suggested Citation

  • Mehmet Karakaya & Bettina Klaus, 2017. "Hedonic coalition formation games with variable populations: core characterizations and (im)possibilities," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(2), pages 435-455, May.
    • Handle: RePEc:spr:jogath:v:46:y:2017:i:2:d:10.1007_s00182-016-0533-y
    DOI: 10.1007/s00182-016-0533-y
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    Cited by:

    1. Sylvain Béal & Sylvain Ferrières & Philippe Solal, 2023. "A Core-Partition Ranking Solution to Coalitional Ranking Problems," Group Decision and Negotiation, Springer, vol. 32(4), pages 965-985, August.
    2. Sylvain Béal & Sylvain Ferrières & Philippe Solal, 2021. "A Core-partition solution for coalitional rankings with a variable population domain," Working Papers 2021-06, CRESE.
    3. Andrew J. Collins & Sheida Etemadidavan & Wael Khallouli, 2020. "Generating Empirical Core Size Distributions of Hedonic Games using a Monte Carlo Method," Papers 2007.12127, arXiv.org.
    4. Stéphane Gonzalez & Aymeric Lardon, 2018. "Axiomatic Foundations of a Unifying Core," Working Papers 1817, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    5. Gonzalez, Stéphane & Lardon, Aymeric, 2021. "Axiomatic foundations of the core for games in effectiveness form," Mathematical Social Sciences, Elsevier, vol. 114(C), pages 28-38.
    6. Can, Burak & Pourpouneh, Mohsen & Storcken, Ton, 2023. "Distance on matchings: an axiomatic approach," Theoretical Economics, Econometric Society, vol. 18(2), May.

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    More about this item

    Keywords

    Coalitional unanimity; Competition sensitivity; Consistency; Core; Hedonic coalition formation; Maskin monotonicity; Resource sensitivity;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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