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The core of a coalitional exchange economy

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Author Info
Elena L. del Mercato () (DISES-CSEF, Università degli Studi di Salerno)

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Abstract

In pure exchange economies, a poor attention has been given to how the individual consumption possibilities of the members of a coalition should be represented. It seems economically reasonable that our knowledge and our possibility to make decisions depend on the coalition we belong to. We define a coalitional exchange economy by considering a pure exchange economy in which the individual consumption sets of consumers within a coalition depend on the membership of the coalition. Our definition includes as a particular case the classical definition of pure exchange economy. We adapt the core concept to a coalitional exchange economy, and we show the non-emptiness of the core. Finally, we discuss more general setting where individual preferences are also depending on the coalitions.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2006/B06047.pdf
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Publisher Info
Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number b06047.

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Length: 7 pages
Date of creation: May 2006
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Handle: RePEc:mse:wpsorb:b06047

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Related research
Keywords: Cooperative game; core; exchange economy; consumption possibility.;

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Find related papers by JEL classification:
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Florenzano Monique, 1987. "On the non-emptiness of the core of a coalitional production economy without ordered preferences," CEPREMAP Working Papers (Couverture Orange) 8733, CEPREMAP.
  2. Boehm, Volker, 1974. "The Core of an Economy with Production," Review of Economic Studies, Blackwell Publishing, vol. 41(3), pages 429-36, July. [Downloadable!] (restricted)
  3. Border, Kim C, 1984. "A Core Existence Theorem for Games without Ordered Preferences," Econometrica, Econometric Society, vol. 52(6), pages 1537-42, November. [Downloadable!] (restricted)
  4. Herbert E. Scarf, 1965. "The Core of an N Person Game," Cowles Foundation Discussion Papers 182R, Cowles Foundation, Yale University. [Downloadable!]
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