encompasses many economic models with externalities and outside options. We show that when outside options are pure (i … distribution of coalitional gains and the dynamics of coalition formation are characterized in four illustrative applications. …

We introduce externalities into a two-sided, one-to-one assignment game by letting the values generated by pairs depend … that a stable outcome in an assignment game with externalities always exists if and only if all pairs are pessimistic …

We develop a model of assignment games with pairwise-identity-dependent externalities. A concept of conjectural …

This paper studies coalition formation and payoff division in apex games under the following assumptions: first, payoff … division can only be agreed upon after the coalition has formed (two-stage bargaining); second, negotiations in the coalition … can break down, in which case a new coalition may be formed (reversible coalitions).In contrast with the results of other …

This paper studies multilateral negotiations among n players in an environment where there are externalities and … expected value of players, and the Markov state transition probability that encodes the path of coalition formation. The … existence of equilibria is established, and Pareto efficiency is guaranteed if the grand coalition is efficient, despite the …

This paper studies the relation between optimal dam capacity and water management under rivalry uses and externalities …-linear building cost of dam capacity and externalities in a welfare optimization model. We obtain the optimal dam capacity for multi …

externalities. Within this framework we propose a new value that extends the Shapley value to partition function form games, the so …