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The difference between the weak core and the strong core from the design point of view

Author

Listed:
  • Ville Korpela

    (University of Turku)

  • Michele Lombardi

    (University of Liverpool Management School
    University of Napoli Federico II)

  • Foivos Savva

    (University of Southampton)

Abstract

From a normative viewpoint, there is no compelling reason for preferring the weak over the strong core, and vice versa. However, the situation changes significantly from a mechanism design perspective. We work in a rights structures environment, where the role of the social planner is to allocate rights to individuals or coalitions which allow them to change the status-quo state. While coalitions are irrelevant for implementation in weak core (Koray and Yildiz in J. Econ. Theory 176:479-502, 2018; Korpela et al. in J. Econ. Theory 185:104953, 2020), our results show that they are fundamental for implementation in strong core. We fully characterize the implementation of social choice rules in strong core to outline this distinction. For robustness, we also characterize double implementation in weak and strong core which we show to be equivalent to implementation in weak core. Finally, we show that this equivalence breaks down in the more realistic case of implementation by codes of rights, where the set of states coincides with the set of outcomes.

Suggested Citation

  • Ville Korpela & Michele Lombardi & Foivos Savva, 2025. "The difference between the weak core and the strong core from the design point of view," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 79(4), pages 1255-1281, June.
    • Handle: RePEc:spr:joecth:v:79:y:2025:i:4:d:10.1007_s00199-024-01624-2
    DOI: 10.1007/s00199-024-01624-2
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    More about this item

    Keywords

    Implementation; Rights structures; Weak core; Strong core;
    All these keywords.

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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