Core implementation and increasing returns to scale for cooperation

Abstract

In this paper we analyze a simple non-cooperative bargaining model for coalition formation and payoff distribution for games in coalitional 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, i.e. the game is convex. This offers a characterization of a purely cooperative notion by means of a non-cooperative foundation.