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Laws of scarcity for a finite game - exact bounds on estimations

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Author Info
Alexander Kovalenkov
Myrna Wooders ()

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Abstract

A “law of scarcity” is that scarceness is rewarded. We demonstrate laws of scarcity for cores and approximate cores of games. Furthermore, we show that equal treatment core payoff vectors satisfy a condition of cyclic monotonicity. Our results are developed for parameterized collections of games and exact bounds on the maximum possible deviation of approximate core payoff vectors from satisfying a law of scarcity are stated in terms of the parameters describing the games. We note that the parameters can, in principle, be estimated. Copyright Springer-Verlag Berlin/Heidelberg 2005

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File URL: http://hdl.handle.net/10.1007/s00199-003-0443-7
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Publisher Info
Article provided by Springer in its journal Economic Theory.

Volume (Year): 26 (2005)
Issue (Month): 2 (08)
Pages: 383-396
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Handle: RePEc:spr:joecth:v:26:y:2005:i:2:p:383-396

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Related research
Keywords: Monotonicity; Cooperative games; Clubs; Games with side payments (TU games); Cyclic monotonicity; Law of scarcity; Law of demand; Approximate cores; Effective small groups; Parameterized collections of games.;

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  1. Shapley, Lloyd S. & Shubik, Martin, 1969. "On market games," Journal of Economic Theory, Elsevier, vol. 1(1), pages 9-25, June. [Downloadable!] (restricted)
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Cited by:
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  1. Edward Cartwright & Myrna Wooders, 2005. "The Law od Demand in Tiebout Economies," Working Papers 0527, Department of Economics, Vanderbilt University. [Downloadable!]
    Other versions:
  2. Nizar Allouch & Myrna Wooders, 2004. "Price taking equilibrium in club economies with multiple memberships and unbounded club sizes," Cahiers de la Maison des Sciences Economiques b04109, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
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