2018Theoretical EconomicsOpen access

Rationing rules and stable coalition structures

Oihane Gallo, Elena Inarra

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Abstract

This paper introduces a model of coalition formation with claims.It assumes that agents have claims over the outputs that they could produce by forming coalitions.Outputs are insufficient to meet the claims and are rationed by a rule whose proposals of division induce each agent to rank the coalitions in which she can participate.As a result, a hedonic game of coalition formation emerges.Using resource monotonicity and consistency, we characterize the continuous rationing rules that induce hedonic games that admit core stability.

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What this paper is about

This paper introduces a model of coalition formation with claims.It assumes that agents have claims over the outputs that they could produce by forming coalitions.Outputs are insufficient to meet the claims and are rationed by a rule whose proposals of division induce each agent to rank the coalitions in which she can participate.As a result, a hedonic game of coalition formation emerges.Using resource monotonicity and consistency, we characterize the continuous rationing rules that induce hedonic games that admit core stability.

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Available abstract

This paper introduces a model of coalition formation with claims.It assumes that agents have claims over the outputs that they could produce by forming coalitions.Outputs are insufficient to meet the claims and are rationed by a rule whose proposals of division induce each agent to rank the coalitions in which she can participate.As a result, a hedonic game of coalition formation emerges.Using resource monotonicity and consistency, we characterize the continuous rationing rules that induce hedonic games that admit core stability.

Key concepts: Rationing, Computer science, Mathematical economics, Economics, Health care, Economic growth

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