Core Implementation and Increasing Returns to Scale for Cooperation

Authors: 
Benny Moldovanu & Eyal Winter
Abstract: 

In this paper we analyze a simple non-cooperative bargaining model for coalition formation and payoff distribution in games with coalition form. We show that under our bargaining regime a cooperative game is core implementable if and only if it possesses the property of increasing returns to scale for cooperation. Namely, the game is convex. This offers a characterization of a purely cooperative notion by means of its non-cooperative foundations.

Date: 
December, 1992
Published in: 
Journal of Mathematical Economics 23 (1994), 533-548
Number: 
23