Income distribution and majority patterns

Majority coalitions are formed such that they can redistribute incomes to their favour. When inequality is to be increased in the interest of some, coalition partners must be found by compensation schemes. Compensation minimization is shown to lead to coalition partners being either a connected or a disconnected income group. When inequality reaches certain levels, disconnection becomes unavoidable.
 
A slightly revised version of the paper will appear in the International Journal of Computational Economics and Econometrics.