Many public goods that are provided by coalitions have a group-size effect. Namely, people prefer to consume a public good in a larger coalition. This paper studies local public goods games with anonymous and separable group-size effect. The core is nonempty when coalition feasible sets are...

This paper proposes a new approach to city formation by modifying conventional network games to suit particularly the study of spatial configurations and urban structures. While we postulate uncompensated knowledge spillovers as the main driving force of population agglomeration, we depart from...