IDEAS home Printed from https://ideas.repec.org/p/iuj/wpaper/ems_2021_05.html
   My bibliography  Save this paper

Marginal Productivity and Coalition Formation with Distributive Norms

Author

Listed:
  • Hideaki Goto

    (IUJ Research Institute, International University of Japan)

Abstract

This paper analyzes coalition formation under constant, decreasing, and increasing marginal productivity when the total surplus jointly produced by individuals with heterogeneous abilities can only be distributed to its members in egalitarian or meritocratic ways. When marginal productivity is decreasing or constant, the results are simple, as no coalition with multiple members is included in a stable coalition structure when marginal productivity is decreasing, whereas individuals are indifferent to which meritocratic coalition they belong, including singletons, in the case of constant marginal productivity. In contrast, if marginal productivity is increasing, stable structures differ considerably from those obtained by other models. A procedure to identify stable structures is proposed, finding that multiple egalitarian coalitions can exist, each of which is always consecutive, but there is, at most, only one meritocratic coalition, which may or may not be consecutive, in stable structures. Moreover, the grand egalitarian coalition is only stable under certain conditions, whereas the grand meritocratic coalition is always stable.

Suggested Citation

  • Hideaki Goto, 2021. "Marginal Productivity and Coalition Formation with Distributive Norms," Working Papers EMS_2021_05, Research Institute, International University of Japan.
    • Handle: RePEc:iuj:wpaper:ems_2021_05
    as

    Download full text from publisher

    File URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2021_05.pdf
    File Function: First version, 2021
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alison Watts, 2007. "Formation of segregated and integrated groups," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(4), pages 505-519, April.
    2. Morelli, Massimo & Park, In-Uck, 2016. "Internal hierarchy and stable coalition structures," Games and Economic Behavior, Elsevier, vol. 96(C), pages 90-96.
    3. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
    4. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(1), pages 135-153.
    5. NISHIMURA, Takeshi & 西村, 健 & OKADA, Akira & 岡田, 章 & SHIRATA, Yasuhiro & 白田, 康洋, 2015. "Evolution of Fairness and Group Formation in Multi-Player Ultimatum Games," Discussion Papers 2015-06, Graduate School of Economics, Hitotsubashi University.
    6. Roemer John E. & Silvestre Joaquim, 1993. "The Proportional Solution for Economies with Both Private and Public Ownership," Journal of Economic Theory, Elsevier, vol. 59(2), pages 426-444, April.
    7. , & ,, 2009. "Coalition formation under power relations," Theoretical Economics, Econometric Society, vol. 4(1), March.
    8. Ray, Debraj, 2007. "A Game-Theoretic Perspective on Coalition Formation," OUP Catalogue, Oxford University Press, number 9780199207954.
    9. Greenberg, Joseph & Weber, Shlomo, 1986. "Strong tiebout equilibrium under restricted preferences domain," Journal of Economic Theory, Elsevier, vol. 38(1), pages 101-117, 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. Herings, P. Jean-Jacques & Saulle, Riccardo & Seel, Christian, 2020. "The Last will be First, and the First Last: Segregation in Societies with Relative Payoff Concerns (RM/18/027-revised-)," Research Memorandum 011, Maastricht University, Graduate School of Business and Economics (GSBE).
    2. Morelli, Massimo & Park, In-Uck, 2016. "Internal hierarchy and stable coalition structures," Games and Economic Behavior, Elsevier, vol. 96(C), pages 90-96.
    3. Herings, P. Jean-Jacques & Saulle, Riccardo & Seel, Christian, 2018. "The Last will be First, and the First Last: Segregation in Societies with Positional Externalities," Research Memorandum 027, Maastricht University, Graduate School of Business and Economics (GSBE).
    4. Tobias Hiller, 2023. "Training, Abilities and the Structure of Teams," Games, MDPI, vol. 14(3), pages 1-8, May.
    5. Emiliya Lazarova & Dinko Dimitrov, 2013. "Status-seeking in hedonic games with heterogeneous players," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(4), pages 1205-1229, April.
    6. Antoni Rubí-Barceló, 2013. "Efficiency and stability in a strategic model of hedonic coalitions," International Journal of Economic Theory, The International Society for Economic Theory, vol. 9(2), pages 131-145, June.
    7. Tobias Hiller, 2022. "Abilities and the structure of the firm," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(3), pages 339-349, September.
    8. Gabrielle Demange, 2017. "The stability of group formation," Revue d'économie politique, Dalloz, vol. 127(4), pages 495-516.
    9. Barberà, Salvador & Beviá, Carmen & Ponsatí, Clara, 2015. "Meritocracy, egalitarianism and the stability of majoritarian organizations," Games and Economic Behavior, Elsevier, vol. 91(C), pages 237-257.
    10. Greg Leo & Jian Lou & Martin Van der Linden & Yevgeniy Vorobeychik & Myrna Wooders, 2021. "Matching soulmates," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(5), pages 822-857, October.
    11. Mauleon, Ana & Roehl, Nils & Vannetelbosch, Vincent, 2019. "Paths to stability for overlapping group structures," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 19-24.
    12. Alison Watts, 2007. "Formation of segregated and integrated groups," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(4), pages 505-519, April.
    13. Barbera, Salvador & Gerber, Anke, 2003. "On coalition formation: durable coalition structures," Mathematical Social Sciences, Elsevier, vol. 45(2), pages 185-203, April.
    14. Papai, Szilvia, 2004. "Unique stability in simple coalition formation games," Games and Economic Behavior, Elsevier, vol. 48(2), pages 337-354, August.
    15. repec:ebl:ecbull:v:8:y:2005:i:11:p:1-5 is not listed on IDEAS
    16. Mauleon, Ana & Roehl, Nils & Vannetelbosch, Vincent, 2018. "Constitutions and groups," Games and Economic Behavior, Elsevier, vol. 107(C), pages 135-152.
    17. Francis Bloch & Effrosyni Diamantoudi, 2011. "Noncooperative formation of coalitions in hedonic games," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(2), pages 263-280, May.
    18. Dominik Karos, 2015. "Stable partitions for games with non-transferable utilities and externalities," Economics Series Working Papers 741, University of Oxford, Department of Economics.
    19. Alcalde-Unzu, Jorge & Gallo, Oihane & Inarra, Elena & Moreno-Ternero, Juan D., 2024. "Solidarity to achieve stability," European Journal of Operational Research, Elsevier, vol. 315(1), pages 368-377.
    20. Vartiainen, Hannu, 2011. "Dynamic coalitional equilibrium," Journal of Economic Theory, Elsevier, vol. 146(2), pages 672-698, March.
    21. Shlomo Wever & Alexei Savvateev & Michel Le Breton & Anna Bogomolnaia, 2005. "The Egalitarian sharing rule in provision of public goods," Economics Bulletin, AccessEcon, vol. 8(11), pages 1-5.

    More about this item

    Keywords

    Coalition formation; Egalitarianism; Meritocracy; Marginal productivity.;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D30 - Microeconomics - - Distribution - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iuj:wpaper:ems_2021_05. 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: Kazumi Imai, Office of Academic Affairs (email available below). General contact details of provider: https://edirc.repec.org/data/gsiujjp.html .

    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.