@inbook{795bdb8a984f448c8dc2eeff206d86ac,
title = "Coalition Formation",
abstract = "This chapter surveys a sizable and growing literature on coalition formation. We refer to theories in which one or more groups of agents ({"}coalitions{"}) deliberately get together to jointly determine within-group actions, while interacting noncooperatively across groups. The chapter describes a variety of solution concepts, using an umbrella model that adopts an explicit real-time approach. Players band together, perhaps disband later and re-form in shifting alliances, all the while receiving payoffs at each date according to the coalition structure prevailing at the time. We use this model to nest two broad approaches to coalition formation, one based on cooperative game theory, the other based on noncooperative bargaining. Three themes that receive explicit emphasis are agent farsightedness, the description of equilibrium coalition structures, and the efficiency implications of the various theories.",
keywords = "Bargaining, Blocking, Coalition formation, Coalition structures, Core, Farsightedness, Stable set",
author = "Debraj Ray and Rajiv Vohra",
note = "Funding Information: The authors thank Jeroen Hogendorp, Chris Sturhann and Michael Ward for their helpful comments. We thank Francis Bloch, Mert Kimya, Hideo Konishi, Licun Xue and two referees for very helpful comments. Ray's research was supported by the National Science Foundation under grant no. SES-0962124. Publisher Copyright: {\textcopyright} 2015 Elsevier B.V.",
year = "2015",
doi = "10.1016/B978-0-444-53766-9.00005-7",
language = "English (US)",
series = "Handbook of Game Theory with Economic Applications",
publisher = "Elsevier B.V.",
number = "1",
pages = "239--326",
booktitle = "Handbook of Game Theory with Economic Applications",
edition = "1",
}