
Coalitional stability under myopic expectations and externalities
We study coalition formation problems in the presence of externalities, focusing on settings where agents exhibit myopic expectations, that is, they evaluate potential deviations based solely on the immediate outcome, assuming no further reactions or reorganization by others. First, we establish a sufficient condition for the non-emptiness of both the core and the stable set. In the case of the core, our condition for ensuring non-emptiness also provides a characterization of all core partition…