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The equity core and the core

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  • Vilella Bach, Misericòrdia
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    Abstract

    In this paper we study the equity core (Selten, 1978) and compare it with the core. A payo vector is in the equity core if no coalition can divide its value among its members proportionally to a given weight system and, in this way, give more to each member than the amount he or she receives in the payo vector. We show that the equity core is a compact extension of the core and that, for non-negative games, the intersection of all equity cores with respect to all weights coincides with the core of the game. Keywords: Cooperative game, equity core, equal division core, core. JEL classi cation: C71

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    File URL: http://hdl.handle.net/2072/220760
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    Bibliographic Info

    Paper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/220760.

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    Date of creation: 2013
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    Handle: RePEc:urv:wpaper:2072/220760

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    Keywords: Jocs cooperatius; 33 - Economia;

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    1. Kannai, Yakar, 1992. "The core and balancedness," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 12, pages 355-395 Elsevier.
    2. Dutta, Bhaskar & Ray, Debraj, 1991. "Constrained egalitarian allocations," Games and Economic Behavior, Elsevier, vol. 3(4), pages 403-422, November.
    3. Izquierdo, Josep M. & Rafels, Carles, 2001. "Average Monotonic Cooperative Games," Games and Economic Behavior, Elsevier, vol. 36(2), pages 174-192, August.
    4. Anindya Bhattacharya, 2004. "On the equal division core," Social Choice and Welfare, Springer, vol. 22(2), pages 391-399, 04.
    5. Ichiishi, Tatsuro, 1981. "Super-modularity: Applications to convex games and to the greedy algorithm for LP," Journal of Economic Theory, Elsevier, vol. 25(2), pages 283-286, October.
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