Experimental Studies of Coalition Formation

Abstract

A coalition is the joint use of resources to determine the outcome of a decision, which must take place in a situation that has elements of both coordination and conflict. This chapter discusses the coalition situation, theoretical alternatives, experimental evidence, and ideal conditions for the theories. Different theories, each with a specific set of assumptions about norms and motives, are available to explain the experimental results. The minimum resource theory emphasizes the initial resources, which the players bring to the situation. Minimum power theory focuses on strategic position in bargaining; while, anticompetitive theory focuses on the potentially disruptive aspects of bargaining. Utter confusion theory emphasizes the importance of a large number of fortuitous factors, which have nothing to do with the resources, pivotal power, or stable social relationships of the players. Each theory finds some support in experimental evidence. However, the coalitions predicted by minimum resource theory are confirmed in a number of experiments. Although, there is some support for each theory, one could, if so inclined, create experimental conditions that would support any of them.