Coalition Formation

Drawing upon and extending his inaugural Lipsey Lectures, Debraj Ray looks at coalition formation from the perspective of game theory. Ray brings together developments in both cooperative and noncooperative game theory to study the analytics of coalition formation and binding agreements.

First published in 1984. In this book, the authors set forth the central ideas and results of the major theories of coalition forming behavior. These theories address situations of partial conflict of interest with the following aspects: (1) there are three or more players, (2) players may openly communicate with each other, and (3) players form coalitions by freely negotiating agreements on how to disburse the gains that result from the coalition members’ joint coordinated efforts. These models arise from the two disciplines of mathematics, in the theory of cooperative n-person games with side payments, and social psychology, in theories of small group behavior in mixed-motive situations. The goal is to explore the various solution concepts that make up this body of theory, and in particular to examine the psychological premises that underlie the various theoretical models.

Coalition Formation and Social Choice provides a unified and comprehensive study of coalition formation and collective decision-making in committees. It discusses the main existing theories including the size principle, conflict of interest theory, dominant player theory, policy distance theory and power excess theory. In addition, the book offers new theories of coalition formation in which the endogenous formation of preferences for coalitions is basic. Both simple game theory and social choice theory are extensively applied in the treatment of the theories. This combined application not only leads to new theories but also offers a new and fresh perspective on coalition formation and collective decision-making in committees. The book covers the fundamental concepts and results of social choice theory including Arrow's Impossibility Theorem. Furthermore, it gives a coherent treatment of the theory of simple games. Besides more traditional topics in simple game theory like power indices, it also introduces new aspects of simple games such as the Chow parameter, the Chow vector and the notion of similar games.

A comprehensive view of coalition formation is presented here. Each of the chapters gives a summary of theories and research findings in a specific field of interest, at various levels of human and primate organisation.

Understanding the formation of governments has always been central to political science. Traditionally this topic has been considered from a rational choice theory perspective and the empirical testing of these theories; however neither approach alone is able to explain a large proportion of actual coalition formations. This comparative volume brings together a rational choice theory perspective and the empirical testing of these theories to study government formation. It provides in-depth studies of government formations in Europe that cannot be accounted for by existing coalition theory in order to identify potential explanatory factors that have been neglected so far. These ‘coalition puzzles’ are reconstructed by country experts based on secondary sources, newspaper accounts, internal party documents, and interviews in an effort to understand why particular governments were formed. In conclusion, this book assesses whether new factors can be integrated into rational choice theories or whether these analyses point to the need for a different paradigm. This important volume will be of interest to students and scholars of political science, European politics and comparative politics.

Some of the specific topics addressed include: advances in the theory of large co-operative games; non co-operative models of coalition formation; a survey of the partition function in the formation of coalitions; far-sightedness in coalition formation; coalition stability; coalition formation in industrialized economics, trade theory, environmental economics and public finance.

Understanding the formation of governments has always been central to political science. Traditionally this topic has been considered from a rational choice theory perspective and the empirical testing of these theories; however neither approach alone is able to explain a large proportion of actual coalition formations. This comparative volume brings together a rational choice theory perspective and the empirical testing of these theories to study government formation. It provides in-depth studies of government formations in Europe that cannot be accounted for by existing coalition theory in order to identify potential explanatory factors that have been neglected so far. These ‘coalition puzzles’ are reconstructed by country experts based on secondary sources, newspaper accounts, internal party documents, and interviews in an effort to understand why particular governments were formed. In conclusion, this book assesses whether new factors can be integrated into rational choice theories or whether these analyses point to the need for a different paradigm. This important volume will be of interest to students and scholars of political science, European politics and comparative politics.