On the Nash Stability in the Hedonic Coalition Formation Games

Abstract

This paper studies the Nash stability in hedonic coalition formation games. We address the following issue: for a general problem formulation, is there any utility allocation method ensuring a Nash-stable partition? We propose the definition of the Nash-stable core. We study the conditions for having a non-empty Nash-stable core. More precisely, we show how relaxed efficiency in utility sharing method allows to ensure a non-empty Nash-stable core.