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 …

coalition formation. It allows to make an explicit distinction between within-group and outside-group deviation options. This … the bargaining set containing a minimal winning coalition are characterized. Furthermore, it is shown that the bargaining … set of any homogeneous weighted majority game contains an outcome for which the underlying coalition structure consists of …

distortion is due to the externalities on agents' reservation utilities. In contrast, when the principal's offers are privately … observed, the distortion is due to the externalities arising at efficient trade profiles. When the principal can commit to an …

efficient, regardless of externalities created by interim actions. Otherwise, in the presence of externalities on outside … the distribution of coalitional gains and the dynamics of coalition formation in four illustrative applications …

distortion is due to the externalities on agents' reservation utilities. In contrast, when the principal's offers are privately … observed, the distortion is due to the externalities arising at efficient trade profiles. When the principal can commit to an …