In this note we show that no solution to coalition formation games can satisfy a set of axioms that we propose as reasonable. Our result points out that solutions to the coalition formation cannot be interpreted as predictions of what would be resting points for a game in the way stable...

This paper considers the endogenous formation of an institution to provide a public good. If the institution governs only its members, players have an incentive to free ride on the institution formation of others and the social dilemma is simply shifted to a higher level. Addressing this...

This paper considers the endogenous formation of an institution to provide a public good. If the institution governs only its members, players have an incentive to free ride on the institution formation of others and the social dilemma is simply shifted to a higher level. Addressing this...