This paper extends the theory of endogenous coalition formation, with complete information and transferable utility, to …

This paper extends the theory of endogenous coalition formation, with complete information and transferable utility, to …

for the existence of an efficient equilibrium in coalitional bargaining with externalities and renegotiations," Operations …

externalities are more positive, there exists a grand-coalition SSPE of the bargaining game for any discount factor. However, if the … separately, considering wage contract externalities. We show that if the two workers are sufficiently complementary or if … two workers are sufficiently substitutable, there is no grand-coalition SSPE for any discount factor. In addition, we …

sufficient conditions for efficiency. -- externalities ; coalition formation ; Shapley value … function with nonpositive externalities whose unique solution is inefficient, as well as a four-player characteristic function … Maskin’s insight that externalities may play a crucial role in generating inefficiency. Many existing solutions on how to …

function with nonpositive externalities whose unique solution is inefficient, as well as a four-player characteristic function … Maskin's insight that externalities may play a crucial role in generating inefficiency. Many existing solutions on how to … whom to bargain. We illustrate how this may trigger inefficiency, especially in the presence of externalities, even if …

We consider a standard coalitional bargaining game where once a coalition forms it exits as in Okada (2011), however … chosen with equal probability. If that is the case, she can choose any coalition she belongs to. However, a coalition can …

increasing as a coalition adds to its members. The new feature in the mechanism is that the proposer has a choice to implement …

This paper studies infinite-horizon bargaining between a seller and multiple buyers when externalities are present. We … externalities. Since each buyer receives a positive payoff when the seller makes an agreement with some other buyer, positive … externalities induce a war of attrition between buyers. …