Date of This Version
October 2010
Abstract
This paper extends the theory of endogenous coalition formation, with complete information and transferable utility, to the overlapping case. We propose a cover function bargaining game which allows the formation of overlapping coalitions at equilibrium. We show the existence of subgame perfect equilibrium and provide an algorithm to compute this equilibrium in the symmetric case. As an application, we establish an interesting link with the formation of networks.
Recommended Citation
Agbaglah, Messan and Ehlers, Lars, "Overlapping Coalitions, Bargaining and Networks" (October 11, 2010). Fondazione Eni Enrico Mattei Working Papers. Paper 505.
https://services.bepress.com/feem/paper505
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