Morelli, Massimo; Park, In-Uck - Department of Economics, European University Institute - 2011
When an agent decides whether to join a coalition or not, she must consider both i) the expected strength of the … coalition and ii) her position in the vertical structure within the coalition. We establish that there exists a positive … formed. When coalition size is unrestricted, in all stable systems the endogenous coalitions must be mixed and balanced in …