The two most fundamental questions in cooperative game theory are: When a game is played, what coalitions will be formed and what payoﬀ vectors will be chosen? No previous solution concepts or theories in the literature provide satisfactory answers to both questions; answers are especially lacking for the ﬁrst one. In this paper we introduce the reﬁned bargaining set, which is the ﬁrst solution concept in cooperative game theory that simultaneously provides answers to both of the fundamental questions.
Zhou, Lin, "-Person Game and Endogenous Coalition Formation" (1991). Cowles Foundation Discussion Papers. 1217.