Article ID Journal Published Year Pages File Type
5072649 Games and Economic Behavior 2007 17 Pages PDF
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
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