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Solidarity to achieve stability

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Listed:
  • Jorge Alcalde-Unzu
  • Oihane Gallo
  • Elena Inarra
  • Juan D. Moreno-Ternero

Abstract

Agents may form coalitions. Each coalition shares its endowment among its agents by applying a sharing rule. The sharing rule induces a coalition formation problem by assuming that agents rank coalitions according to the allocation they obtain in the corresponding sharing problem. We characterize the sharing rules that induce a class of stable coalition formation problems as those that satisfy a natural axiom that formalizes the principle of solidarity. Thus, solidarity becomes a sufficient condition to achieve stability.

Suggested Citation

  • Jorge Alcalde-Unzu & Oihane Gallo & Elena Inarra & Juan D. Moreno-Ternero, 2023. "Solidarity to achieve stability," Papers 2302.07618, arXiv.org, revised Oct 2023.
    • Handle: RePEc:arx:papers:2302.07618
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