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.

Oral arguments are a key aspect of the Supreme Court's decision-making process

Why do some parties coordinate their electoral strategies as part of a pre-electoral coalition, while others choose to compete independently at election time? Scholars have long ignored pre-electoral coalitions in favor of focusing on the government coalitions that form after parliamentary elections. Yet electoral coalitions are common, they affect electoral outcomes, and they have important implications for democratic policy-making itself. The Logic of Pre-Electoral Coalition Formation by Sona Nadenichek Golder includes a combination of methodological approaches (game theoretic, statistical, and historical) to explain why pre-electoral coalitions form in some instances but not in others. The results indicate that pre-electoral coalitions are more likely to form between ideologically compatible parties. They are also more likely to form when the expected coalition size is large (but not too large) and when the potential coalition partners are similar in size. Ideologically polarized party systems and disproportional electoral rules in combination also increase the likelihood of electoral coalition formation. Golder links the analysis of pre-electoral coalition formation to the larger government coalition literature by showing that pre-electoral agreements increase (a) the likelihood that a party will enter government, (b) the ideological compatibility of governments, and (c) the speed with which governments take office. In addition, pre-electoral coalitions provide an opportunity for combining the best elements of the majoritarian vision of democracy with the best elements of the proportional vision of democracy.

This is the second of three volumes surveying the state of the art in Game Theory and its applications to many and varied fields, in particular to economics. The chapters in the present volume are contributed by outstanding authorities, and provide comprehensive coverage and precise statements of the main results in each area. The applications include empirical evidence. The following topics are covered: communication and correlated equilibria, coalitional games and coalition structures, utility and subjective probability, common knowledge, bargaining, zero-sum games, differential games, and applications of game theory to signalling, moral hazard, search, evolutionary biology, international relations, voting procedures, social choice, public economics, politics, and cost allocation. This handbook will be of interest to scholars in economics, political science, psychology, mathematics and biology. For more information on the Handbooks in Economics series, please see our home page on http://www.elsevier.nl/locate/hes

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.

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.

This is the classic work upon which modern-day game theory is based. What began as a modest proposal that a mathematician and an economist write a short paper together blossomed, when Princeton University Press published Theory of Games and Economic Behavior. In it, John von Neumann and Oskar Morgenstern conceived a groundbreaking mathematical theory of economic and social organization, based on a theory of games of strategy. Not only would this revolutionize economics, but the entirely new field of scientific inquiry it yielded--game theory--has since been widely used to analyze a host of real-world phenomena from arms races to optimal policy choices of presidential candidates, from vaccination policy to major league baseball salary negotiations. And it is today established throughout both the social sciences and a wide range of other sciences.

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.

Coalitions are the commonest kind of democratic government, occurring frequently in most countries of western Europe. It is usually assumed that political parties came together in a government coalition because they agree already, or can reach an agreement, on the policy it should pursue. This book examines this idea using evidence from party election programmes and government programmes. It demonstrates that party policies do influence government programmes, but not to the extent they would if policy-agreement were the sole basis of coalition.