Coalition Formation
The formation of alliances between individuals or groups to achieve goals unattainable alone. Coalitions require coordination, trust, and often reciprocity.
Used in the Books
This term appears in 2 chapters:
"...meetings recorded, all employees rate each other constantly, all criticism public. It's an attempt to replicate the information symmetry that enables coalition formation in nature. The Dot System: Every employee rates every other employee on 100+ attributes continuously: - Real-time feedback via iPad app - Ratin..."
"Nissan's stock crashed 40%. Renault's dropped 25%. Coalition power of $127B evaporated to $65B. This chapter explores the biology of coalition formation - how weaker parties ally to overcome stronger opponents, how coalitions are maintained through reciprocal exchange, why some coalitions last decades..."
Biological Context
Male dolphins form alliances to compete for females. Chimpanzees build political coalitions for status. Coalitions are common when individual power is insufficient but combined power succeeds. Coalition members must solve free-rider problems and coordinate action.
Business Application
Business coalitions: industry associations, standards bodies, joint ventures, and lobbying groups. Effective coalition building requires understanding each member's incentives and ensuring collective action benefits all participants.