Maruta, Toshimasa; Okada, Akira - In: Games and Economic Behavior 74 (2012) 1, pp. 269-284
We consider dynamic group formation in repeated n-person prisonerʼs dilemma. Agreements in coalitional bargaining are self-binding in that they are supported as subgame perfect equilibria of repeated games. Individuals are allowed to renegotiate the cooperating group agreement through a process...