Equilibrium coalitional behavior

Abstract

I develop two related solution concepts—equilibrium coalitional behavior and credible equilibrium coalitional behavior—that capture foresight and impose the requirement that each coalition in a sequence of coalitional moves chooses optimally among all its available options. The model does not require, but may use, the apparatus of a dynamic process or a protocol that specifies the negotiation procedure underlying coalition formation. Therefore, it forms a bridge between the non‐cooperative and the cooperative approaches to foresight.