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The formation of coalitions to achieve both collaborative and competitive goals is a phenomenon we see all around us. The list is long and varied: production cartels, political lobbies, customs unions, environmental coalitions, and ethnic alliances are just a few everyday instances. Drawing upon and extending his inaugural Lipsey Lectures at the University of Essex, Debraj Ray looks at coalition formation from the perspective of game theory. How are agreements determined? Which coalitions will form? And are such agreements ...

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