Rationing Rules and Stable Coalition Structures

This paper introduces a model of coalition formation with claims. It assumes that agents have claims over the outputs they could produce by forming coalitions. Outputs, insu¢ cient to meet the claims, are rationed by a rule... [ view full abstract ]

This paper introduces a model of coalition formation with claims. It assumes that agents have claims over the outputs they could produce by forming coalitions. Outputs, insu¢ cient to meet the claims, are rationed by a rule whose proposals of division induce agents to rank coalitions in which they can participate. As a result, a hedonic game of coalition formation emerges. Introducing the class of non-circular hedonic games and using consistency and resource monotonicity we

characterize the rationing rules that induce hedonic games that admit core-stability.