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Linearity of the core correspondence

Author

Listed:
  • Dénes Pálvölgyi

    (Corvinus University of Budapest, MTA-BCE “Lendület” Strategic Interactions Research Group)

  • Hans Peters

    (Maastricht University)

  • Dries Vermeulen

    (Maastricht University)

Abstract

Bloch and de Clippel (J Econ Theory 145:2424–2434, 2010) characterized sets of balanced TU-games on which the core correspondence is linear by means of an equivalence relation. We characterize maximal regions on which the core correspondence is linear in four different ways. First, by finitely many linear equalities and inequalities; thus, the core is piecewise linear. Second, maximal linear regions coincide with closures of equivalence classes (in the sense of Bloch and de Clippel) that are maximal w.r.t. set inclusion. Third, maximal linear regions coincide with closures of equivalence classes of full dimension. Fourth, for every extreme point of the core of a game in the interior of a maximal linear region, the collection of tight core inequalities constitutes a basis.

Suggested Citation

  • Dénes Pálvölgyi & Hans Peters & Dries Vermeulen, 2018. "Linearity of the core correspondence," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(4), pages 1159-1167, November.
  • Handle: RePEc:spr:jogath:v:47:y:2018:i:4:d:10.1007_s00182-017-0604-8
    DOI: 10.1007/s00182-017-0604-8
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    References listed on IDEAS

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    1. Francis Bloch & Geoffroy de Clippel, 2009. "Cores of Combined Games," Working Papers 2009-1, Brown University, Department of Economics.
    2. Jeroen Kuipers & Dries Vermeulen & Mark Voorneveld, 2010. "A generalization of the Shapley–Ichiishi result," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(4), pages 585-602, October.
    3. Lloyd S. Shapley, 1967. "On balanced sets and cores," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 14(4), pages 453-460.
    4. Bloch, Francis & de Clippel, Geoffroy, 2010. "Cores of combined games," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2424-2434, November.
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