On Coalition Formation Games ∗ Jana Hajdukov´a Institute of Mathematics, Faculty of Science, P.J. Saf´arikUniversity,ˇ Jesenn´a5, 041 54 Koˇsice, Slovakia, e-mail:
[email protected] June 22, 2004 Abstract. In this paper we give an overview of various methods used to study cooperation within a set of players. Besides the classical games with transferable utility and games without transferable utility, recently new models have been proposed: the coalition formation games. In these, each player has his own preferences over coalitions to which he could belong and the quality of a coalition structure is evaluated according to its stability. We review various definitions of stability and restrictions of preferences ensuring the existence of a partition stable with respect to a particular stability definition. Further, we stress the importance of preferences over sets of players derived from preferences over individuals and review the known algorithmic results for special types of preferences derived from the best and/or the worst player of a coalition. Keywords: coalition formation, stability, extending preferences, algorithms, NP-completeness Mathematical subjects classification: 91A12, 91A06, 91B68, 68W05 ∗This research was started while the author was visiting Universitat Aut`onoma de Barcelona. She is grateful to their hospitality and financial support under Marie Curie Fellowship. This work was supported also by the Slovak Agency for Science, contract #1/0425/03 ”Combina- torial Structures and Complexity of Algorithms”. The author would like to thank Katar´ına Cechl´arov´afor her helpful comments. 1 2 IM Preprint series A, No. 5/2004 1 Introduction In many social, economic and political situations individuals prefer to carry out their activities in groups (coalitions) rather than on their own.