This paper provides a framework for implementing and comparing several solution concepts for transferable utility cooperative games.We construct bidding mechanisms where players bid for the role of the proposer.The mechanisms differ in the power awarded to the proposer.The Shapley, consensus and...

We study the model of link formation that was introduced by Aumann and Myerson (1988) and focus on symmetric convex games with transferable utilities. We show that with at most five players the full cooperation structure results according to a subgame perfect Nash equilibrium.Moreover, if the...

In this paper we introduce a strategic form model in which cooperation structures and divisions of the payoffs are determined simultaneously. We analyze the cooperation structures and payoff divisions that result according to several equilibrium concepts. We find that essentially no cycles will...

In this note we study the endogenous formation of cooperation structures. According to several equilibrium concepts the full cooperation structure will form or some structure that is payoff-equivalent to the full cooperation structure. As a by-product we find a class of games in strategic form...

This paper studies an extensive form game of coalition formation with random proposers in a situation where coalitions impose externalities on other players. It is shown that an agreement will be reached without delay provided that any set of coalitions profit from merging. Even under this...

This paper analyzes some pros and cons of a monetary union for the ASEAN1 countries, excluding Myanmar. We estimate a stylized open-economy dynamic general equilibrium model for the ASEAN countries. Using the framework of linear quadratic differential games, we contrast the potential gains or...

In this paper we define a new family of solutions for the class of cooperative games with transferable utility, in which the set of players exhibits a structure of a priori unions.This family is deeply connected with the Shapley value for games with transferable utility but, moreover, we assume...

Some new axiomatic characterizations and recursive formulas of the Shapley value are presented. In the results, dual games and the self-duality of the value implicitly play an important role. A set of non-cooperative games which implement the Shapley value on the class of all games is given.

Different axiomatic systems for the Shapley value can be found in the literature.For games with a coalition structure, the Shapley value also has been axiomatized in several ways.In this paper, we discuss a generalization of the Shapley value to the class of partition function form games.The...

This paper studies noncooperative bargaining with random proposers in proper single games. A power index is called consistent if it can be obtained as an equilibrium of the game with random proposers using the index itself as probability vector. Unlike the Shapley-Shubik and Banzhaf indices, the...