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Subgame Perfect Coalition Formation

Abstract

We analyze a dynamic coalition formation game of perfect information where players can each make a (finite) number of offers to other players to form coalitions. We show that there is a class of no-delay subgame perfect equilibria where the outcomes are individually rational and Pareto optimal, and we provide sufficient conditions for equilibrium to implement core coalition structures.

Citation

Leo, Greg, Eugene Vorobeychik and Myrna Wooders, Subgame Perfect Coalition Formation; Pareto Optimality, Individual Rationality, and Matching Soulmates

Paper

Subgame Perfect Coalition Formation; Pareto Optimality, Individual Rationality, and Matching Soulmates