Abstract
AbstractThe purpose of the paper is twofold: we show (i) how to compute a partition function for differential games and (ii) how to derive stable coalition structures. (i) The partition function assigns a worth to each coalition under a given coalition structure. Here we assume that for a given coalition structure the coalitions play a noncooperative game and the worth of a coalition is then the noncooperative equilibrium payoff. (ii) We define a stable coalition structure in terms of the equilibrium of Bloch’s (1996, Games and Economic Behavior 14) game of choice of coalition size. Finally, we consider a cake eating differential game and compute the equilibrium coalition structures for up to \(800'000'000\) agents.
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