Endogenous Formation of Research Coalitions with Spillovers

Download or read book Endogenous Formation of Research Coalitions with Spillovers written by Sang-Seung Yi and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper argues that the sign of external effects of coalition formation provides a useful organizing principle in examining economic coalitions. In many interesting economic games, coalition formation creates either negativee externalities or positive externalities for nonmembers. Examples of negative externalities are research coalitions and customs unions. Examples of positive externalities include output cartels and public goods coalitions. I characterize and compare stable coalition structures under the following three rules of coalition formation: the Open Membership game of Yi and Shin 1995 , the Coalition Unanimity game of Bloch 1996 , and the Equilibrium Binding Agreements of Ray and Vohra 1994.