We generalise the coalition structure core to partition function games. Our definition relies only on one crucial … initial one, and – whenever this is possible – they come to a residual core outcome. Deviating players form their optimistic … or pessimistic expectations with this in mind. This leads to a recursive definition of the core. When compared to …

sell-side). This simple and intuitive learning process implements core allocations even though agents have no knowledge of …

among the heaviest drinkers – the group who, at the margin, are likely to create the largest externalities from drinking … price floor outperforms an ethanol tax. However, more flexible tax systems can achieve similar reductions in externalities …

externalities. Policy effectiveness depends on whether the measure achieves large reductions in the most socially costly consumption …

This paper reinterprets the γ-core (Chander and Tulkens (1995, 1997)) and justifies it as well as its prediction that … the efficient coalition structure is stable in terms of the coalition formation theory. It is assumed that coalitions can …

encompasses many economic models with externalities and outside options. We show that when outside options are pure (i …