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Stable sets for exchange economies with interdependent preferences

Author

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  • Graziano, Maria Gabriella
  • Meo, Claudia
  • Yannelis, Nicholas C.

Abstract

We introduce the notion of stable sets with externalities and prove its existence. Stable sets provide a successful alternative to core notions of externalities (i.e., α-core, β-core and strong Nash equilibrium), which are typically empty. However, the stable sets do exist in situations where the above core notions are empty.

Suggested Citation

  • Graziano, Maria Gabriella & Meo, Claudia & Yannelis, Nicholas C., 2017. "Stable sets for exchange economies with interdependent preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 140(C), pages 267-286.
    • Handle: RePEc:eee:jeborg:v:140:y:2017:i:c:p:267-286
    DOI: 10.1016/j.jebo.2017.05.017
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    Citations

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    Cited by:

    1. Maria Gabriella Graziano & Marialaura Pesce & Vincenzo Platino, 2023. "Decentralization in Non-Convex Economies with Externalities," CSEF Working Papers 678, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    2. Christian Pietro & Maria Gabriella Graziano & Vincenzo Platino, 2022. "Social loss with respect to the core of an economy with externalities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(2), pages 487-508, April.
    3. Carlos Hervés-Beloso & Emma Moreno-García, 2022. "Revisiting the Coase theorem," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(2), pages 421-438, April.
    4. Maria Gabriella Graziano & Claudia Meo & Nicholas C. Yannelis, 2023. "Core and stable sets of exchange economies with externalities," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(1), pages 27-44, April.
    5. Núñez, Marina & Vidal-Puga, Juan, 2022. "Stable cores in information graph games," Games and Economic Behavior, Elsevier, vol. 132(C), pages 353-367.
    6. Maria Gabriella Graziano & Claudia Meo & Nicholas C. Yannelis, 2018. "Housing market models with consumption externalities," CSEF Working Papers 500, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    7. Maria Gabriella Graziano & Claudia Meo & Nicholas C. Yannelis, 2020. "Shapley and Scarf housing markets with consumption externalities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1481-1514, September.
    8. M. Lombardi & S. Tonin, 2020. "On trade in bilateral oligopolies with altruistic and spiteful agents," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(2), pages 203-218, October.

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    More about this item

    Keywords

    Stable sets; Interdependent preferences; Core; Types of agents;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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