The equal division kernel: An equity approach to coalition formation and payoff distribution in N-person games

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Abstract

Most existing models of coalition formation and payoff distribution in groups rest upon normative considerations and are ambiguous in their predictions insofar as they do not determine which of several coalitions will most probably result. The paper sketches the basic features of a model derived from social psychological exchange-and equity-theory which predicts coalitions and payoff distributions for a variety of situations. The evaluation of the model by the results of several experiments indicates that it provides a reasonable starting point for further theoretical developments that are based empirical studies.

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