Hedonic Game

Hedonic games model coalition formation where agents strategically choose groups based on individual preferences, aiming for stable coalition structures. Current research focuses on developing efficient algorithms to find stable partitions, particularly exploring approximations like ε-fractional core stability, and analyzing the computational complexity of finding welfare-maximizing partitions under various social welfare measures (e.g., utilitarian and egalitarian) in different graph structures (e.g., trees). These models find applications in diverse areas, including peer-to-peer energy trading where social factors influence coalition formation and resource allocation, highlighting the importance of considering both individual preferences and broader social dynamics.