Potential maximizers and network formation

In this paper we study the formation of cooperation structures in superaddi tive cooperative TU-games. Cooperation structures are represented by hyperg raphs. The formation process is modelled as a game in strategic form, where the payoffs are determined according to a weighted (extended) Myerson valu e. This class of solution concepts is the unique class resulting in weighte d potential games. The argmax set of the weighted potential predicts the fo rmation of the complete structure and structures payoff-equivalent to the c omplete structure. As by-products we obtain a representation theorem of wei ghted potential games in terms of weighted Shapley values and a characteriz ation of the weighted (extended) Myerson values. (C) 2000 Elsevier Science B.V. All rights reserved.