Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5072649 | Games and Economic Behavior | 2007 | 17 Pages |
Abstract
A natural extension of superadditivity is not sufficient to imply that the grand coalition is efficient when externalities are present. We provide a condition, analogous to convexity, that is sufficient for the grand coalition to be efficient and show that this also implies that the (appropriately defined) core is nonempty. Moreover, we propose a mechanism which implements the most efficient partition for all coalition formation games and characterizes the resulting payoff division.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Isa E. Hafalir,