ABSTRACT

Earlier, it was noted that a complete analysis of coalition formation behavior includes examinations of three basic phenomena: (i) the coalition structures that form, (ii) the payoffs allocated to players within each coalition of the coalition structures, and (iii) the bargaining process that leads from the beginning of the game to the first two phenomena. By bargaining process is meant here a specification of the intermediate stages between the commencement of the game and the formation of a PC, such stages being expressable as the offering, agreement to, or rejection of proposals to form coalitions and divide their payoff among their members.