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Stationary Consistent Equilibrium Coalition Structures Constitute the Recursive Core

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  • Koczy, Laszlo A.

Abstract

We study coalitional games where the proceeds from cooperation depend on the entire coalition structure. The coalition structure core (Kóczy, 2007) is a generalisation of the coalition structure core for such games. We introduce a noncooperative, sequential coalition formation model and show that the set of equilibrium outcomes coincides with the recursive core. In order to extend past results to games that are not totally balanced (understood in this special setting) we introduce subgame-consistency that requires perfectness in relevant subgames only, while subgames that are never reached are ignored.

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  • Koczy, Laszlo A., 2009. "Stationary Consistent Equilibrium Coalition Structures Constitute the Recursive Core," Sustainable Development Papers 54365, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemdp:54365
    DOI: 10.22004/ag.econ.54365
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    Cited by:

    1. Maria Montero, 2023. "Coalition Formation in Games with Externalities," Dynamic Games and Applications, Springer, vol. 13(2), pages 525-548, June.
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    3. Greg Leo & Yevgeniy Vorobeychik & Myrna Wooders, 2023. "Subgame Perfect Coalition Formation," Dynamic Games and Applications, Springer, vol. 13(2), pages 510-524, June.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    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

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