Diamantoudi, Effrosyni; Sartzetakis, Eftichios Sofokles; … - 2018 - Preliminary version
countries, allowing for transfers. We employ a two-stage, non-cooperative model of coalition formation. In the first stage each … simultaneously. Coalition members agree also to share the gains from cooperation in the first stage. We use quadratic benefit and … examining the impact of transfers on the coalition size, we apply the notion of Potential Internal Stability (PIS). Results show …