Home > Research > Publications & Outputs > A Theory of Gradual Coalition Formation


Text available via DOI:

View graph of relations

A Theory of Gradual Coalition Formation

Research output: Contribution to Journal/MagazineJournal articlepeer-review

<mark>Journal publication date</mark>1/10/1998
<mark>Journal</mark>Review of Economic Studies
Issue number4
Number of pages23
Pages (from-to)793-815
Publication StatusPublished
<mark>Original language</mark>English


We study noncooperative multilateral bargaining games, based on underlying TU games, in which coalitions can renegotiate their agreements. We distinguish between models in which players continue to bargain after implementing agreements ("reversible actions") and models in which players who implement agreements must leave the game ("irreversible actions"). We show that renegotiation always results in formation of the grand coalition if actions are reversible, but that the process may otherwise end with smaller coalitions. On the other hand, we show that the grand coalition cannot form in one step if the core of the game is empty, irrespective of the reversibility of actions.