A new bargaining set based on notions of both internal and external stability is developed in the context of endogenous coalition formation. It allows to make an explicit distinction between within-group and outside-group deviation options. This type of distinction is not present in current...

Covert organizations are constantly faced with a tradeoff between secrecy and operational effciency. Lindelauf, Borm and Hamers (2008) developed a theoretical framework to determine optimal homogeneous networks taking the above mentioned considerations explicitly into account. In this paper this...