Consider an environment with widespread externalities, and suppose that binding agreements can be written. We study coalition formation in such a setting. Our analysis proceeds by defining on a partition function an extensive form bargaining game. We establish the existence of a stationary...

We study the provision of public goods when all agents have complete information and can write binding agreements. This framework is in deliberate contrast to a traditional view of the free-rider problem based on hidden information or voluntary provision. We focus on coalition formation as a...