. Trade agreement formation is modeled as coalition formation. In a standard trade model with no distance between countries, a …

We propose a framework to analyze coalition formation with heterogeneous agents. Existing literature defines stability … conditions that do not ensure that, once an agent decides to sign an agreement, the enlarged coalition is feasible. Defining the … concepts of refraction and exchanging, we set up conditions of existence and enlargement of a coalition with heterogeneous …

informed senders. Private information is (conditionally) correlated across players, and communication is cheap talk. For the … one sender case, we show that correlation unambiguously tightens the existence conditions for a truth-telling equilibrium …. We then generalize the model to an arbitrary number of senders, and we find that, in this case, the effect of correlation …

bilateral communication structure, truthful communication arises endogenously only under additional conditions. The model also …

from the standard assumption of joint welfare maximization of coalition members, implying ambitious abatement targets and …

distribution of coalitional gains and the dynamics of coalition formation are characterized in four illustrative applications. …