Coalitions in Oligopolies

An Introduction to the Sequential Procedures
Coalitions refer to mergers and acquisitions, cartels, and associations. This book examines sequential coalition formation in oligopolies. The principal aim is the prediction and explanation of the coalition structure - whether an industry will emerge as a monopoly, say, or as a collection of sub-coalitions.
This book examines sequential coalition formation in oligopolies. Coalitions refer to mergers and acquisitions, cartels, and associations. The principal aim is the prediction and explanation of the coalition structure - whether an industry will emerge as a monopoly, say, or as a collection of sub-coalitions. In environments where decisions to form coalitions are made sequentially, the prediction and explanation of the equilibrium coalition structure can differ dramatically from the textbook simultaneous-move model. This difference derives from the knowledge effect, which is unique to the sequential-move models.

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