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...

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...