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Coalition formation in the Airport Problem

Author

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  • Farrokhi, Mahmoud

    (Center for Mathematical Economics, Bielefeld University)

Abstract

We have studied the incentives of forming coalitions in the Airport Problem. It has shown that in this class of games, if coalitions form freely, the Shapley value does not lead to the formation of grand or coalitions with many players. Just a coalition with a few number of players forms to act as the producer and other players would be the consumers of the product. We have found the two member coalition which forms and we have checked its stability.

Suggested Citation

  • Farrokhi, Mahmoud, 2011. "Coalition formation in the Airport Problem," Center for Mathematical Economics Working Papers 416, Center for Mathematical Economics, Bielefeld University.
    • Handle: RePEc:bie:wpaper:416
    as

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    File URL: https://pub.uni-bielefeld.de/download/2316429/2319866
    File Function: First Version, 2009
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    References listed on IDEAS

    as
    1. van den Brink, Rene & van der Laan, Gerard, 2005. "A class of consistent share functions for games in coalition structure," Games and Economic Behavior, Elsevier, vol. 51(1), pages 193-212, April.
    2. S. C. Littlechild & G. Owen, 1973. "A Simple Expression for the Shapley Value in a Special Case," Management Science, INFORMS, vol. 20(3), pages 370-372, November.
    3. Huang, Chen-Ying & Sjostrom, Tomas, 2003. "Consistent solutions for cooperative games with externalities," Games and Economic Behavior, Elsevier, vol. 43(2), pages 196-213, May.
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    More about this item

    Keywords

    Coalition formation; Cooperative games; Stable coalition; Shapley value; Airport Problem;
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