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Stable Coalition Structures: Characterizations and Applications of Hart and Kurz's Four Stability Concepts

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  • Takaaki Abe

    (Graduate School of Economics, Waseda University)

Abstract

Hart and Kurz (1983) introduced four stability concepts, called α-, β-, γ-, and δ-stability. In contrast to the intensive studies on their conceptual aspects, these notions have rarely been adopted to analyze stable coalition structures in an application because the definitions consist of multiple intermediate steps. The purpose of this paper is to solve these practical difficulties. We provide an explicit form for each of the four stability concepts and reformulate each concept without using any intermediate steps. Moreover, we offer some sufficient conditions that guarantee the existence of stable coalition structures and the inclusion relation among the four stability notions. In addition, we propose a new approach to characterize the notions of stability. An application of our results to Cournot oligopoly is also provided.

Suggested Citation

  • Takaaki Abe, 2019. "Stable Coalition Structures: Characterizations and Applications of Hart and Kurz's Four Stability Concepts," Working Papers 1812, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:1812
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    References listed on IDEAS

    as
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    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.
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    7. Takaaki Abe, 2018. "Stable coalition structures in symmetric majority games: a coincidence between myopia and farsightedness," Theory and Decision, Springer, vol. 85(3), pages 353-374, October.
    8. Yoshio Kamijo, 2009. "A Two-Step Shapley Value For Cooperative Games With Coalition Structures," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 207-214.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    coalition formation; coalition structure; Cournot oligopoly; stability;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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