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We study the stability properties of organizations in partition function games, describing cooperative situations with externalities. An organization is defined as a group of agents, together with a set of bilateral relations, formally, a connected graph. Because of the presence of...
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determinedthat depends on the relative positions of the players within the graph. A collection of graphs will be called balanced if … lies in the core andthe payoff vector is an element of payoff sets of all graphs in some balanced collection ofgraphs. We …
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Two firms engage in price competition to attract buyers located on a network. The value of the good of either firm to any buyer depends on the number of neighbors on the network who adopt the same good. When the size of externalities increases linearly with the number of adoptions, we identify...
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