Skip to main content

Games of Coalition and Network Formation: A Survey

  • Chapter

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 613))

This paper presents some recent developments in the theory of coalition and network formation. For this purpose, a few major equilibrium concepts recently introduced to model the formation of coalition structures and networks among players are briefly reviewed and discussed. Some economic applications are also illustrated to give a flavour of the type of predictions such models are able to provide.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Aumann R (1967) A survey of games without side payments. In: Shubik M (ed) Essays in mathematical economics. Princeton University Press, Princeton, pp 3–27

    Google Scholar 

  2. Aumann R, Myerson R (1988) Endogenous formation of links between players and coalitions: an application of the shapley value. In: Roth A (ed) The shapley value. Cambridge University Press, Cambridge, pp 175–191.

    Google Scholar 

  3. Belleflamme P, Bloch F (2004) Market sharing agreements and stable collusive networks. Int Econ Rev 45:387–411.

    Article  Google Scholar 

  4. Bloch F (1995) Endogenous structures of associations in oligopolies. Rand J Econ 26: 537–556.

    Article  Google Scholar 

  5. Bloch F (1996) Sequential formation of coalitions with fixed payoff division. Games Econ Behav 14:90–123.

    Article  Google Scholar 

  6. Bloch F (1997) Non cooperative models of coalition formation in games with spillovers. In: Carraro C, Siniscalco D (eds) New directions in the economic theory of the environment. Cambridge University Press, Cambridge

    Google Scholar 

  7. Bloch F (2002) Coalition and networks in industrial organization. The Manchester School 70:36–55

    Article  Google Scholar 

  8. Bloch F (2003) Coalition formation in games with spillovers. In: Carraro C (ed) The endogenous formation of economic coalitions. Fondazione Eni Enrico Mattei Series on Economics and the Environment, Cheltenham, UK. Elgar, Northampton, MA

    Google Scholar 

  9. Bloch F (2004) Group and network formation in industrial organization. In: Demange G, Wooders M (eds) Group formation in economics: networks, clubs and coalitions. Cambridge University Press, Cambridge

    Google Scholar 

  10. Bloch F, Jackson MO (2006) Definitions of equilibrium in network formation games. Int J Game Theory 34:305–318

    Article  Google Scholar 

  11. Bloch F, Jackson MO (2007) The formation of networks with transfers among players. J Econ Theory 133:83–110

    Article  Google Scholar 

  12. Bulow J, Geanokoplos J, Klemperer P (1985) Multimarket oligopoly: strategic substitutes and complements. J Polit Econ 93:488–511

    Article  Google Scholar 

  13. Calvó-Armengol A, Ilkilic R (2004) Pairwise stability and Nash equilibria in network formation. Universitat Autonoma de Barcelona (unpublished)

    Google Scholar 

  14. Chander P, Tulkens H (1997) The core of an economy with multilateral externalities. Int J Game Theory 26:379–401

    Google Scholar 

  15. Currarini S, Marini MA (2003) A sequential approach to the characteristic function and the core in games with externalities. In: Sertel M, Kara A (eds) Advances in economic design. Springer, Berlin

    Google Scholar 

  16. Currarini S, Marini MA (2006) Coalition formation in games without synergies. Int Game Theory Rev 8(1):111–126

    Article  Google Scholar 

  17. Dutta B, Jackson MO (2003) On the formation of networks and groups. In: Dutta B, Jackson MO (eds) Networks and groups: models of strategic formation. Springer, Heidelberg

    Google Scholar 

  18. Dutta B, Mutuswami S (1997) Stable networks. J Econ Theory 76:322–344

    Article  Google Scholar 

  19. Dutta B, van den Nouweland, Tijs AS (1998) Link formation in cooperative situations. Int J Game Theory 27:245–256

    Article  Google Scholar 

  20. Fudenberg D, Tirole J (1991) Game theory. MIT, Cambridge, MA

    Google Scholar 

  21. Gilles RP, Sarangi S (2004) The role of trust in costly network formation. Virginia Tech (unpublished)

    Google Scholar 

  22. Goyal S, Joshi S (2003) Networks of collaboration in oligopoly. Games Econ Behav 43:57–85

    Article  Google Scholar 

  23. Greenberg J (1994) Coalition structures. In: Aumann RJ, Hart S (eds) Handbook of game theory, vol 2. Elsevier, Amsterdam

    Google Scholar 

  24. Hamilton J, Slutsky S (1990) Endogenous timing in duopoly games: stackelberg or cournot equilibria. Games Econ Behav 2:29–46

    Article  Google Scholar 

  25. Hart S, Kurz M (1983) Endogenous formation of coalitions. Econometrica 52:1047–1064

    Article  Google Scholar 

  26. Ichiishi T (1983) A social coalitional equilibrium existence lemma. Econometrica 49:369–377

    Article  Google Scholar 

  27. Ilkilic R (2004) Pairwise stability: externalities and existence. Universitat Autonoma de Barcelona (unpublished)

    Google Scholar 

  28. Jackson MO (2003) The stability and efficiency of economic and social networks. In: Koray S, Sertel M (eds) Advances in economic design. Springer, Heidelberg. Reprinted in Dutta B, Jackson MO (eds) Networks and groups: models of strategic formation. Springer, Heidelberg

    Google Scholar 

  29. Jackson MO (2005a) A survey of models of network formation: stability and efficiency. In: Demange G, Wooders M (eds) Group formation in economics: networks, clubs, and coalitions. Cambridge University Press, Cambridge

    Google Scholar 

  30. Jackson MO (2005b) The economics of social networks. In: Blundell R, Newey W, Persson T (eds) Proceedings of the 9th World Congress of the Econometric Society, Cambridge University Press, Cambridge, August 2005

    Google Scholar 

  31. Jackson MO (2007) Social and economic networks. Princeton University Press, Princeton

    Google Scholar 

  32. Jackson MO, van den Nouweland A (2005) Strongly stable networks. Games Econ Behav 51:420–444

    Article  Google Scholar 

  33. Jackson MO, Watts A (2002) The evolution of social and economic networks. J Econ Theory 196(2):265–295

    Article  Google Scholar 

  34. Jackson MO, Wolinsky A (1996) A strategic model of social and economic networks. J Econ Theory 71:44–74

    Article  Google Scholar 

  35. Marini M (2007) Endogenous timing with coalitions of agents. CREI, Roma Tre (unpublished)

    Google Scholar 

  36. Myerson R (1977) Graphs and cooperation in games. Math Oper Res 2:225–229

    Article  Google Scholar 

  37. Myerson R (1991) Game theory: analysis of conflict. Harvard University Press, Cambridge, MA

    Google Scholar 

  38. Owen R (1977) Value of games with a priori unions. In Hein R, Moeschlin O (eds) Essays in mathematical economics and game theory. Springer, New York, pp 76–88

    Google Scholar 

  39. Quin CZ (1996) Endogenous formation of cooperative structures. J Econ Theory 69:218–226

    Article  Google Scholar 

  40. Ray D, Vohra R (1997) Equilibrium binding agreements. J Econ Theory 73:30–78

    Article  Google Scholar 

  41. Ray D, Vohra R (1999) A theory of endogenous coalition structures. Games Econ Behav 26:286–336

    Article  Google Scholar 

  42. Salant SW, Switzer R, Reynolds J (1983) Losses from horizontal merger: the effects of an exogenous change in industry structure on Cournot—Nash equilibrium. Q J Econ 98:185–99

    Article  Google Scholar 

  43. Shenoy (1979) On coalition formation: a game theoretical approach. Int J Game Theory 8:133–164

    Article  Google Scholar 

  44. van den Nouweland A (2005) Models of network formation in cooperative games. In: Demange G, Wooders M (eds) Group formation in economics: networks, clubs, and coalitions. Cambridge University Press, Cambridge

    Google Scholar 

  45. von Neumann J, Morgenstern O (1944) Theory of games and economic behaviour. Princeton University Press, Princeton

    Google Scholar 

  46. Yi S-S (1997) Stable coalition structure with externalities. Games Econ Behav 20:201–237

    Article  Google Scholar 

  47. Yi S-S (2003) The endogenous formation of economic coalitions: the partition function approach. In: Carraro C (ed) The endogenous formation of economic coalitions. Fondazione Eni Enrico Mattei Series on Economics and the Environment, Cheltenham, UK. Elgar, Northampton, MA

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to A. Marini Marco .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2009 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Marco, A.M. (2009). Games of Coalition and Network Formation: A Survey. In: Naimzada, A.K., Stefani, S., Torriero, A. (eds) Networks, Topology and Dynamics. Lecture Notes in Economics and Mathematical Systems, vol 613. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-68409-1_3

Download citation

Publish with us

Policies and ethics