A Formulation of the Aggregation Problem in Terms of Coalition and Bargaining Theory.

The object of this paper is to demonstrate in economic terms the equivalence of the problem of aggregation in input-output analysis with coalition and bargaining problems. Depending on the specific norm for aggregation it is shown that the aggregation criterion and the coalition forming criterion in an n-person game leads to a broadly similar situation in the market sense given that the market operates to that criterion. It is also shown that a mathematical analogue to this formulation may be obtained via the techniques of geometric programming. Copyright 1990 by Kluwer Academic Publishers