Farsighted coalitional stability (Q1332710)

The authors define the largest consistent set, a solution concept which applies to situations in which coalitions freely form but cannot make binding contracts, act publicly, and are fully ``farsighted'' in that a coalition considers the possibility that, once it acts, another coalition might react, a third coalition might in turn react, and so on, without limit. They establish weak nonemptiness conditions and apply it to strategic and coalitional form games and majority rule voting. They argue that it improves on the von Neumann-Morgenstern stable set as it is usually defined but is consistent with a generalization of the stable set as in the theory of social situations.