We analyze the incentives for cooperation of three players differing in their efficiency of effort in a contest game. We concentrate on the non-cooperative bargaining foundation of coalition formation, and therefore, we adopt a two-stage model. In the first stage, individuals form coalitions...

The introduction of the paper discusses the different opinions about income inequalities and income distribution. Further the author presents the most important alternative methods for measuring income inequalities. Contrary to the traditional income distribution analysis the underlying data...