Core and no-treat equilibrium in tournament games with externalities

Plan B paper, M.A., Mathematics, University of Hawaii at Manoa, 2010We consider a situation where coalitions are formed to divide a resource. As in real life, the value of a payoff to a given agent is allowed to depend on the payoff to other agents with whom he shares a common interest. There are various notions of equilibrium for this type of game, including the core and no-treat equilibrium. These stabilities may exist or not, depending on the power structure and the rule for allocating the resource. It is shown that under certain conditions, the no-treat equilibrium can exist even though the core is empty