Power and Welfare in Noncooperative Bargaining for Coalition Structure Formation

In this paper, we investigate a noncooperative sequential bargaining game for allowing a group of agents agents to partition themselves into non-overlapping coalitions. We focus on the issue of how a player's position on the bargaining agenda affects his power. We also analyse the relationship between the distribution of the power of individual players, the level of democracy, and the welfare efficiency of the game.