This paper deals with the issue of how to allocate greenhouse gas emission permits to nations in the long run. The so-called "equitable" rules to allocate such permits under a global agreement (per capita or grandfathering allocation rules for instance) do not necessarily ensure stability in the...

In this paper we consider an urban population represented by a continuum of individuals uniformly distributed over the real line that faces a problem of location and financing of multiple public facilities. We examine three notions of stability of emerging jurisdiction: stability under...

The location of facilities in order to provide service for customers is a well-studied problem in the operations research literature. In the basic model, there is a predefined cost for opening a facility and also for connecting a customer to a facility, the goal being to minimize the total cost....

This paper focuses on the coalitional approach to sequential trading processes. We study the allocation of resources through sequential trading, when individuals have the option to form coalitions and make group decisions. We introduce a new core concept, called the two stage core, which is...

If x is a reasonable agreement in a game V , then so should it remain in the associated game Vx where the coalitions can buy up the cooperation of non-members by 'paying' them according to x. This new stability property called 'Invariance with respect to re-evaluations of coalitional power'...

This paper reinterprets by [gamma]-core (Chander and Tulkens (1995, 1997)) and justifies it as well as its prediction that the efficient coalition structure is stable in terms of the coalition formation theory. It is assumed that coalitions can freely merge or break apart, are farsighted (that...

This paper provides a general overview of the literature on the core of an exchange economy with asymetric information. Incentive compatibility is emphasized in studying core concepts at the ex ante and the interim stage.The analysis includes issues of non emptiness of the core as wellas core...

We show that in large finite economies, core allocations can be approximately decentralized as Nash (rather than Walras) equilibrium. We argue that this excrcise is an essential complement to asymptotic core equivalence results, because it implies that in some approximate sense individual...

In this paper we examine a collective decision problem, where the set of heterogeneous individuals is partitioned into several groups, each choosing its own policy (e.g., location of a public project) from the given policy space. We first consider the notion of "efficient" partition that...

International agreements on transfrontier pollution issues require ap- proval by domestic political institutions. In this paper we employ a voting game theoretic model to characterize the stability of such agreements when each country’s participation is conditioned upon a domestic ratification...