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Solidarity to achieve stability

2023/02/15 by Alcalde-Unzu, Jorge, Gallo, Oihane, Inarra, Elena +1
#FOS: Economics and business #Theoretical Economics (econ.TH)

paper · doi:10.48550/arxiv.2302.07618

Abstract

Agents may form coalitions. Each coalition shares its endowment among its agents by applying a sharing rule. The sharing rule induces a coalition formation problem by assuming that agents rank coalitions according to the allocation they obtain in the corresponding sharing problem. We characterize the sharing rules that induce a class of stable coalition formation problems as those that satisfy a natural axiom that formalizes the principle of solidarity. Thus, solidarity becomes a sufficient condition to achieve stability.

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