Towards a dynamic theory of coalition formation

Abstract

This paper shows the static shortcoming of game theoretical coalition formation theories, which explain and forecast political coalitions. This static shortcoming urges for dynamic coalition formation theories, which do take the process of coalition formation into account. The dynamic theories which are to be found in the literature are either concentrated on the changes in coalition structure or on negotiations within one structure. In this article I therefor present a model which contains both elements. The presented model is based on partition function games and the transfer scheme theory.