Coalitions formation Flashcards
Social Utility in Coalition Formation? Give an example and a proces?
= The process in which two or more parties negotiate about the decision to allocate payoffs to those that are included and those that are excluded in a coalition.
Examples: Countries coalesce, political parties form governments, companies merge, workers form unions, people marry.
Process: People’s evaluations and behavior can be best understood by a combination of self-interest and fairness.
The game of 4-3-2 - Who do you want to be?
Theory and the game of 4-3-2, three theories:
Minimum power theory: Power is everything, if I can be member of more coalitions than you, I have more power than you, I should get more than you.
Minimum resource theory: Resources is everything, if I bring more to the table than you, I deserve to get more than you.
Bargaining theory: Well, life is complicated. I have more than you so I should get more than you. Yes, I have less but you need me, so I want half. Ok, let’s split the difference.
Minimum power theory:
Power is everything, if I can be member of more coalitions than you, I have more power than you, I should get more than you.
Minimum resource theory:
Resources is everything, if I bring more to the table than you, I deserve to get more than you.
Bargaining theory:
Well, life is complicated. I have more than you so I should get more than you. Yes, I have less but you need me, so I want half. Ok, let’s split the difference.
So, what do people actually do in the 4-3-2 game?
Lab: 84% passed comprehension check
Mturk: 83% passed comprehension check
the coalitions that won the most were the ones with the average company and the smallest company not with the largest company
In a coalition game of 5(4 3 2) which coalition is most frequently formed?
Still B C (the smallest with the average)
The divisibility of payoffs - The role of payoffs: divisibility
Alignment of self-interest and fairness payoffs: 5 units versus 3 units
when there are 5 unites the BC coalition is still the most formed
In a 3 units game the coalition of AC is most frequently formed
Do-no-harm - Introducing the game of 2(1 1 1) - Basic question is whether people will exclude others to maximize own outcomes
The percentage of an increase in small coalitions rises
The role of Payoffs: valence
The role of anger
5(4 3 3) game:
only when the angry one is excluded from the game they switch partners, but when the partner that is angry is included or there is no angery partner they stay.
The role of group size and party type
2(1 1 1) landowner game:
Prosocials and proselfs who negotiate as individuals or as dyads
Preffered and formed
preferred:
at a prosocial party the size does not matter in coalition forming
at a pro self party the percentage of small coalitions is higher when in a dyad than a single
Formed:
at a prosocial party the percentage of singe party size is higher than the of a dyad
at the pro self 100% of small coalitions are formed in a dyad and 70 percent in a single
Conflict: How long does it take to ratify a coalition?
At a proself party the group who formed grand was very high 4 times
Recap: The game of 3-2-2
4(3 2 2)- coalition game
- AB = 3:2
- AC = 3:2
- BC = 2:2
Results: ?
BC-coalition most frequently formed
Seeking strength finding weakness - Who do you wanna be? (A, B, or C)
Player A most then player c than player b
What happens when people want to be big? (a big group)
People want to be big with the ironic consequence that they end up with little playoffs
What is the Key solution to formation?
is
(1) to act weak,
(2) to be honest,
(3) do not express anger,
(4) in sum take perspective
(4), or be lucky that
(5) division rules, and/or
(6) valence of payoffs favor the formation of your specific coalition.
What are the different roles of payoffs?
Valence
Divisibility
