Extensive Form Games with Coalitional Actions

I introduce a model of extensive form games with coalitional actions, which provides a formal framework for analysing situations in which coalitions of players may take joint actions sequentially. I present an equilibrium concept that generalizes subgame-perfect equilibrium, and is closely related to the core. The new theory provides insights into the theory of sequential economies.extensive form games with coalitional actions; backward induction; recontracting equilibrium; core; subgame perfect equilibrium