Group Formation through Game Theory and Agent-Based Modeling: Spatial Cohesion, Heterogeneity, and Resource Pooling

This paper develops a game-theoretic model and an agent-based model to study group formation driven by resource pooling, spatial cohesion, and heterogeneity. We focus on cross-sector partnerships (CSPs) involving public, private, and nonprofit organizations, each contributing distinct resources. Group formation occurs as agents strategically optimize their choices in response to others within a competitive setting. We prove the existence of stable group equilibria and simulate formation dynamics under varying spatial and resource conditions. The results show that limited individual resources lead to groups that form mainly among nearby actors, while abundant resources allow groups to move across larger distances. Increased resource heterogeneity and spatial proximity promote the formation of larger and more diverse groups. These findings reveal key trade-offs shaping group size and composition, guiding strategies for effective cross-sector collaborations and multi-agent systems.