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Coalition structure values in differential information economies: Is unity a strength?

  • Stefan Krasa1
  • Akram Temimi
  • Nicholas C. Yannelis
Part of the Studies in Economic Theory book series (ECON.THEORY, volume 19)

Summary

The coalition structure (CS) value, introduced by Owen [9] and Hart and Kurz [5], generalizes the Shapley value to social situations where coalitions form for the purpose of bargaining. This paper introduces the CS value to economies with differential information. We show that the private CS values exists and is Bayesian incentive compatible. Moreover, we construct examples that go against the intuitive viewpoint that “unity is strength.” In particular, we consider a three person economy in which two agents bargain as a unit against the third agent. We show that bargaining as a unit is advantageous if and only if information is complete. This result sheds new light on bargaining under differential information.

Keywords

Private Information Coalition Structure Incentive Compatibility Coalition Member Feasible Allocation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2005

Authors and Affiliations

  • Stefan Krasa1
    • 1
  • Akram Temimi
    • 2
  • Nicholas C. Yannelis
    • 1
  1. 1.Department of EconomicsUniversity of IllinoisChampaignUSA
  2. 2.Department of Economics, Finance and Legal StudiesUniversity of AlabamaTuscaloosa

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