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Stationary consistent equilibrium coalition structures constitute the recursive core

Author

Listed:
  • László Á. Kóczy

    (Keleti Faculty of Economics, Budapest Tech and Department of Economics, Maastricht University)

Abstract
We study coalitional games where the proceeds from cooperation depend on the entire coalition structure. The coalition structure core (Kóczy, GEB, 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.

Suggested Citation

  • László Á. Kóczy, 2009. "Stationary consistent equilibrium coalition structures constitute the recursive core," Working Paper Series 0905, Óbuda University, Keleti Faculty of Business and Management.
    • Handle: RePEc:pkk:wpaper:0905
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    References listed on IDEAS

    as
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    3. Huang, Chen-Ying & Sjostrom, Tomas, 2006. "Implementation of the recursive core for partition function form games," Journal of Mathematical Economics, Elsevier, vol. 42(6), pages 771-793, September.
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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.
    2. László Á. Kóczy, 2018. "Partition Function Form Games," Theory and Decision Library C, Springer, number 978-3-319-69841-0, September.
    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

    partition function; externalities; implementation; recursive core; stationary perfect equilibrium; time consistent equi- librium;
    All these keywords.

    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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