On the stability of coalition structures

We resolve a seeming conflict between a non-existence result on solutions to coalition formation in hedonic games [Barberà, S., Gerber, A., 2007. A note on the impossibility of a satisfactory concept of stability for coalition formation games. Economics Letters 95, 85–90] and the universal existence of stable coalition structures in TU games under the χ-value [Casajus, A., 2008. Outside options, component efficiency, and stability, Games and Economic Behavior (forthcoming). doi: 10.1016/j.geb.2007.04.003].