Why would one agent of one identical pair form a coalition with two agents of another identical pair? Each agent
A) is selfish
B) has convex preferences
C) hates raspberries

Question

Quizplus · Accepted Answer

Since each agent is selfish, they may form coalitions with others in order to achieve their own goals and increase their own payoff. Therefore, it is possible that one agent of one identical pair forms a coalition with two agents of another identical pair, if it benefits the individual agent's interests. The convexity of preferences or preferences for raspberries are irrelevant in this scenario.

Why Would One Agent of One Identical Pair Form a Coalition