VIABLE PROPOSALS

We propose a solution concept-which we call viable proposals-for games in coalitional form that endogenously determines a coalition structur e together with an associated set of payoff configurations as parts of the solution. We show that there is at least one viable proposal for every game; further, whenever a game has a nonempty core, the set of p ayoff configurations identified by the solution coincides with the cor e of the game. Finally, given any arbitrary coalition structure and pa yoff configuration, a viable proposal can be reached in finitely many steps of successive domination even when the core of the game is empty .