?
On the Existence of Nash-stable Partition in Leader’s Coalition Games: A Comparison Between Two Models
This paper investigates two approaches to determining the leader of a coalition partition: the individual and the collective. In the first approach, each coalition in the partition chooses a representative, and then the leader is chosen from among all the representatives. In the second approach, the leading coalition is first chosen in the partition, and then the leader is chosen from among members of that coalition. Both approaches sometimes can be encountered in contests, sports competitions, or political elections. The paper delivers results on the existence of Nash-stable partitions depending on the approach and the probability of determining the leader. The existence of equilibrium in weakly dominant strategies is proved for the collective approach and the weight rule, and the necessary and sufficient conditions for a Nash-stable partition to exist were found for the ranking rule.