Nir Dagan / Teaching

Coalitional Games

Academic year 1997/98

General Description

Game theory is a branch of mathematics which is used in modelling situations in which players with conflicting interests interact. Coalitional Games are games in which the possibilities of the players are described by the available resources of different groups (coalitions) of players.

The course Coalitional Games will discuss the major principles of this branch of game theory, and some of its applications to economics as well as to other fields of social science. In the first part of the course we shall study the core of transferable utility games. Among other things, the relations between the core and price-equilibrium will receive a considerable attention.

The second part of the course will concentrate on the axiomatic approach to solution concepts. We shall discuss the major developments of the last fifteen years or so, highlighting the centrality of the consistency axiom, and of the core as a solution concept. Within the axiomatic approach will shall also discuss the prekernel and the Shapley value.

In the rest of the course depending on time constraints and popular demand, we may discus in greater depth a topic related to the main parts of the course. Possible candidates include non-transferable utility games, and the Nash bargaining problem; cores of large games and economies, and concepts of perfect competition; matching problems; applications to local public goods; the nucleolus and the bargaining set.

Part 1: The Core of Transferable Utility Games

Part 2: The Axiomatic Approach to Solution Concepts


We shall not follow a particular textbook. Most of the first part of the course is covered by the textbooks mentioned below, but most of the second part is not covered by textbooks. Thus, in the second part journal articles will have a larger role.