We consider coalition formation among players in an n-player finite strategic
game over infinite horizon. At each time a randomly formed coalition makes a
joint deviation from a current action profile such that at new action profile
all players from the coalition are strictly benefited. Such deviations define a
coalitional better-response (CBR) dynamics that is in general stochastic. The
CBR dynamics either converges to a strong Nash equilibrium or stucks in a
closed cycle. We also assume that at each time a selected coalition makes
mistake in deviation with small probability that add mutations (perturbations)
into CBR dynamics. We prove that all strong Nash equilibria and closed cycles
are stochastically stable, i.e., they are selected by perturbed CBR dynamics as
mutations vanish. Similar statement holds for strict strong Nash equilibrium.
We apply CBR dynamics to the network formation games and we prove that all
strongly stable networks and closed cycles are stochastically stable
