This paper extends the theory of endogenous coalition formation, with complete information and transferable utility, to …

This paper extends the theory of endogenous coalition formation, with complete information and transferable utility, to …

Consider an environment with widespread externalities, and suppose that binding agreements can be written. We study … coalition formation in such a setting. Our analysis proceeds by defining on a partition function an extensive form bargaining … concerned with the characterisation of equilibrium coalition structures. We develop an algorithm that generates (under certain …

externalities are more positive, there exists a grand-coalition SSPE of the bargaining game for any discount factor. However, if the … separately, considering wage contract externalities. We show that if the two workers are sufficiently complementary or if … two workers are sufficiently substitutable, there is no grand-coalition SSPE for any discount factor. In addition, we …

for the existence of an efficient equilibrium in coalitional bargaining with externalities and renegotiations," Operations …

sufficient conditions for efficiency. -- externalities ; coalition formation ; Shapley value … function with nonpositive externalities whose unique solution is inefficient, as well as a four-player characteristic function … Maskin’s insight that externalities may play a crucial role in generating inefficiency. Many existing solutions on how to …

function with nonpositive externalities whose unique solution is inefficient, as well as a four-player characteristic function … Maskin's insight that externalities may play a crucial role in generating inefficiency. Many existing solutions on how to … whom to bargain. We illustrate how this may trigger inefficiency, especially in the presence of externalities, even if …

increasing as a coalition adds to its members. The new feature in the mechanism is that the proposer has a choice to implement …