In this paper we study the formation of coalition structures in situations described by a cooperative game. Players choose independently which coalition they want to join. The payoffs to the players are determined by an allocation rule on the underlying game and the coalition structure that...

We study the model of link formation that was introduced by Aumann and Myerson (1988) and focus on symmetric convex games with transferable utilities. We show that with at most five players the full cooperation structure results according to a subgame perfect Nash equilibrium. Moreover, if the...