Skip to main content
Log in

Coalition formation with local public goods and group-size effect

  • Published:
International Journal of Game Theory Aims and scope Submit manuscript

Abstract

Many public goods that are provided by coalitions have a group-size effect. Namely, people prefer to consume a public good in a larger coalition. This paper studies local public goods games with anonymous and separable group-size effect. The core is nonempty when coalition feasible sets are monotonic and players’ preferences over public goods satisfy a condition called cardinal connectedness. Moreover, a core allocation consists of connected coalitions.

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

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Aumann RJ, Drèze JH (1975) Cooperative games with coalition structures. Int J Game Theory 3: 217–237

    Article  Google Scholar 

  • Banerjee S, Konishi H, Sönmez T (2001) Core in a simple coalition formation game. Soc Choice Welf 18: 135–153

    Article  Google Scholar 

  • Bogomolnaia A, Jackson MO (2002) The stability of hedonic coalition structures. Game Econ Behav 38: 201–230

    Article  Google Scholar 

  • Bogomolnaia A, Nicolò A (2005) Stabile assignment of public facilities under congestion. J Public Econ Theory 7: 65–91

    Article  Google Scholar 

  • Demange G (1994) Intermediate preferences and stable coalition structures. J Math Econ 23: 45–58

    Article  Google Scholar 

  • Demange G (2004) On group stability in hierarchies and networks. J Polit Econ 112: 754–778

    Article  Google Scholar 

  • Drèze JH, Greenberg J (1980) Hedonic coalitions: optimality and stability. Econometrica 48: 987–1003

    Article  Google Scholar 

  • Grandmont JM (1978) Intermediate preferences and the majority rule. Econometrica 46: 317–350

    Article  Google Scholar 

  • Greenberg J, Weber S (1986) Strong Tiebout equilibrium under restricted preferences domain. J Econ Theory 38: 101–117

    Article  Google Scholar 

  • Greenberg J, Weber S (1993a) Stable coalition structure with a unidimensional set of alternatives. J Econ Theory 60: 62–82

    Article  Google Scholar 

  • Greenberg J, Weber S (1993b) Stable coalition structures in consecutive games. In: Binmore K, Kirman A, Toni P (eds) Frontiers of game theory. MIT Press, Cambridge, pp 103–115

    Google Scholar 

  • Guesnerie R, Oddou C (1981) Second best taxation as a game. J Econ Theory 25: 67–91

    Article  Google Scholar 

  • Iehlé V (2005) The core-partition of a hedonic game. Math Soc Sci 54: 176–185

    Article  Google Scholar 

  • Jackson M, Nicolò A (2004) The strategy-proof provision of public goods under congestion and crowding preferences. J Econ Theory 115: 278–308

    Article  Google Scholar 

  • Kaneko M, Wooders MH (1982) Cores of partitioning games. Math Soc Sci 3: 313–327

    Article  Google Scholar 

  • Katz NL, Shapiro C (1985) Network externalities, competition, and compatibility. Am Econ Rev 75: 424–440

    Google Scholar 

  • Konishi H, Le Breton M, Weber S (1997a) Pure strategy Nash equilibrium in a group formation game with externalities. Game Econ Behav 21: 161–182

    Article  Google Scholar 

  • Konishi H, Le Breton M, Weber S (1997b) Free mobility equilibrium in a local public goods economy with congestion. Res Econ 51: 19–30

    Article  Google Scholar 

  • Konishi H, Le Breton M, Weber S (1997c) Equilibria in a model with partial rivalry. J Econ Theory 72: 225–237

    Article  Google Scholar 

  • Kung FC (2006) An algorithm for stable and equitable coalition structures with public goods. J Public Econ Theory 8: 345–355

    Article  Google Scholar 

  • Le Breton M, Owen G, Weber S (1992) Strongly balanced cooperative games. Int J Game Theory 20: 419–427

    Article  Google Scholar 

  • Milchtaich I (1996) Congestion games with player-specific payoff functions. Game Econ Behav 13: 111–124

    Article  Google Scholar 

  • Scarf HE (1967) The core of an n-person game. Econometrica 35: 50–69

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Fan-Chin Kung.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Kung, FC. Coalition formation with local public goods and group-size effect. Int J Game Theory 39, 573–583 (2010). https://doi.org/10.1007/s00182-009-0199-9

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00182-009-0199-9

Keywords

JEL Classification

Navigation