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Strong equilibria in claim games corresponding to convex games
Authors:Ana Meca-Martínez  J. Sánchez-Soriano  I. García-Jurando  Stef Tijs
Affiliation:(1) Department of Statistics and OR, Faculty of Sciences, University of Alicante, San Vicente del Raspeig, 03071 Alicante, Spain, ES;(2) Department of Statistics and OR, University of Santiago de Compostela, 15706, Santiago de Compostela, Spain, ES;(3) Department of Econometrics, Tilburg University, P.O. Box 90153, LE Tilburg, The Netherlands, NL
Abstract:
This paper deals with a specific aspect of the problem of coalition formation in a situation described by a TU-game. First, we define a very simple normal form game which models the process of coalition formation. To define the payoff functions of the players we use an allocation rule for TU-games. The main objective of this paper is ascertain what conditions of the allocation rule lead to the grand coalition being a strong equilibrium of the normal form game, when the original TU-game is convex. Received January 1996/Revised version December 1996/Final version May 1997
Keywords:: Coalition formation  normal form game  convex TV-game  strong equilibrium
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