Control in Social and Economic Systems

Two types of players in the endogenous coalition formation model

D. S. Stepanov

Moscow State University

Abstract: A model of coalition formation by players whose payoff depends on the value of the parameter (e.g., geographical location, bliss point) is considered. In this model a small portion of new players with the different payoff function is injected into the main population. This paper considers different types of coalition stability and corresponding stability criteria. The derived conditions are then compared with the similar criteria in the game with a single type of players.

Keywords: coalition stability, Nash equilibrium, weak coalitional equilibrium (WCE).

UDC: 519.612+632.4
BBK: 22.18