The coalition formation problem in an economy with externalities can be adequately modeled by using games in partition function form (PFF games), proposed by Thrall and Lucas. If we suppose that forming the grand coalition generates the largest total surplus, a central question is how to...

The Reverse Talmud rule for bankruptcy problems applies the Constrained Equal Awards rule (CEA rule) for ‘large’ amounts of the estate, while it applies the Constrained Equal Losses rule (CEL rule) for ‘small’ amounts of the estate. The CEA rule, respectively CEL rule, can be axiomatized...