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Coalition Formation
The process by which players in a game form alliances or coalitions to achieve a better outcome than they would individually, often studied in cooperative game theory.
Implications
The process of building alliances or partnerships between individuals, groups, or organizations to achieve common goals, often used in business, politics, and international relations.
Example
Example: A group of small businesses forms a coalition to lobby for changes in local tax laws that would benefit their operations, pooling resources and influence to strengthen their position.
Related Terms
Different from mergers or acquisitions, which involve combining entities, coalition formation is about collaboration while maintaining separate identities and operations.
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