This paper studies how to form an efficient coalition$da group of people. More specifically, we compare two mechanisms for forming a coalition by running a laboratory experiment and reveal which mechanism leads to higher social surplus. In one setting, we invite the subjects to join a meeting...

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...