Coalition formation problems with externalities

Expectations, Cores, and Strategy-Proofness Under Externalities

“…The stable set is the set of stable allocations and it is denoted by S (R). 18 In general, a stable allocation can fail to be in the prudent core because the agents in blocking coalition T block can split in several disjoint sub-coalitions T 1 , T 2 , ..., T k ,…”