Modelling of Economies with Relational Constraints on Coalition Formation View Full Text


Ontology type: schema:Chapter     


Chapter Info

DATE

1994

AUTHORS

Robert P. Gilles , Hans Haller , Pieter H. M. Ruys

ABSTRACT

This paper presents an overview of different mathematical techniques to model constraints on coalition formation in the context of a pure exchange economy. We discuss three such models. The first one is a measure theoretic model, in which the Edgeworthian recontracting processes are carried out by a sparse collection of well specified primitive coalitions rather than on the assumption that in principle every group of economic agents is formable as a trade coalition. Here we assume that the collection of primitive coalitions is a semi-ring. The existence of plausible measures expressing size in this setting is investigated. Second, we discuss a relational model of coalition formation. In this model we investigate the underlying economic principles that link social trade relations between economic agents and the individual attributes of these agents. We show that in a relational model there emerge certain classes of economic agents, named macro-types, that are linked with each other and have natural properties that can be expected from economic classes. Third, we study an enhancement of the relational model in which a particular group of economic agents form a trade network in the economy. Such a network performs as a natural market auctioneer, although we limit our discussion to coalition formation in the context of these trade networks. More... »

PAGES

89-136

References to SciGraph publications

Book

TITLE

Imperfections and Behavior in Economic Organizations

ISBN

978-94-010-4599-5
978-94-011-1370-0

Author Affiliations

Identifiers

URI

http://scigraph.springernature.com/pub.10.1007/978-94-011-1370-0_5

DOI

http://dx.doi.org/10.1007/978-94-011-1370-0_5

DIMENSIONS

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