February 13, 2011

A Note on Computational Aspects of Farsighted Coalitional Stability

by Dritan Osmani

- Farsighted stability of Chwe (1994) is discussed while attention is played on the computational framework of finding farsightedly stable coalition structures. The idea of farsightedness means that one should check for multi-step stability by comparing the profits of a coalition member after a series of deviations has come to an end. The deviation is possible only if players display a cooperate attitude by forming a coalition in order to increase their payoffs. The connections of farsighted stabilitywith a positive, negative spillover property and profitability condition are shown. Algorithms are developed, which can find all farsighted stable coalition structures.

Osmani, D. (2011). "A Note on Computational Aspects of Farsighted Coalitional Stability." Hamburg University and Centre for Marine and Atmospheric Science, Working Paper No. FNU-194, Jan 2011.