We develop a novel model of price-fee competition in bilateral oligopoly markets with non-expandable infrastructures and costly transportation. The model captures a variety of real market situations and it is the continuous quantity version of the assignment game with indivisible goods on a .xed...

Cooperative game theory addresses two problems: coalition formation and payoff distribution. We hypothesize that the existence of the core, which is a fundamental concept in cooperative game theory, affects coalition formation, and we examine this hypothesis through a laboratory experiment. In...

Cooperative game theory addresses two problems: coalition formation and payoff distribution. To focus on the payoff distribution problem, cooperative game theorists usually assume the formation of the grand coalition, i.e., full cooperation by all individuals when such cooperation generates the...