Collaborative infrastructure deployment increasingly involves multiple independent stakeholders that jointly invest in shared resources while remaining competitors in their subsequent utilization. This interplay between cooperation and competition creates a coupling between infrastructure investment, resource allocation, and coalition formation. To capture these interactions, we develop a market-based framework that jointly addresses infrastructure investment, resource allocation, and coalition formation. The proposed model extends the Fisher market by incorporating endogenous resource production and strategic allocation externalities, allowing stakeholders’ investments to determine both infrastructure capacity and their purchasing power. For a given coalition structure, the resulting market equilibrium is characterized through a variational inequality, with equilibrium prices arising from resource-capacity constraints. We further embed these outcomes in a partition-function-form cooperative game and use the recursive core to analyze the stability of co-investment structures. The framework provides a unified approach for studying efficient resource production and allocation together with stable cooperation among competing stakeholders.
