This paper studies efficient partnership dissolution with ex post participation constraints in a setting with interdependent valuations. We derive a sufficient condition that ensures the existence of an efficient dissolution mechanism that satisfies Bayesian incentive compatibility, ex post...

We consider a hedonic coalition formation game in which at each possible partition any new coalition can decide the probability with which to form and leave the current partition. These probabilities are commonly known so that farsighted players can decide whether or not to support a coalition's...