| Author: | Kim, C. Shin, H. |
| Title: | Endogenous formation of coalitions with composite goods |
| Journal: | International Journal of Industrial Organization
2002 : DEC, VOL. 20:10, p. 1491-1512 |
| Index terms: | ORGANIZATION ANALYTICAL REVIEW MODELS SOCIAL WELFARE |
| Language: | eng |
| Abstract: | The authors construct a model of endogenous formation of coalitions when three goods are necessary for a composite good, and composite goods are substitutes for each other. This analysis extends Economides and Salop's model of composite goods where two goods are necessary. The authors analyze the welfare implications of coalition structure, and investigate which coalition structure leads to the highest social welfare. The paper investigates whether the most desirable coalition structure represents an equilibrium, and provides a sufficient condition for the socially efficient coalition structure to be a stable Nash coalition structure. |
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