This paper studies how to form an efficient coalition$da group of people. More specifically, we compare two mechanisms for forming a coalition by running a laboratory experiment and reveal which mechanism leads to higher social surplus. In one setting, we invite the subjects to join a meeting...

Cooperative game theory addresses two problems: coalition formation and payoff distribution. We hypothesize that the existence of the core, which is a fundamental concept in cooperative game theory, affects coalition formation, and we examine this hypothesis through a laboratory experiment. In...

In this paper we consider a model of an economy with a common pool resource. Under decreasing returns to scale, it is well-known that no Nash equilibrium attains Pareto efficiency. We examine whether it is possible to achieve Pareto efficiency and avoid the tragedy of the commons through...