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On the Game-Theoretic Structure of Public-Good Economies

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  • Yves Sprumont

    (C.R.D.E and DÊpartment de Sciences Economiques, UniversitÊ de MontrÊal, C.P.6128, Succursale Centre-Ville, MontrÊal , Canada H3C 3J7)

Abstract

The paper characterizes the class of transferable-utility cooperative games arising from public-good economies. In the symmetric case and in the three-players case, this class is precisely that of convex games. In general, a highly structured pattern of differences between the worths of the various coalitions is characteristic of the public-good games. This pattern implies convexity but also many other restrictions. Some of these restrictions express in a formal way the intuition that full cooperation is the only stable form of collective behaviour in public-good economies.

Suggested Citation

  • Yves Sprumont, 1998. "On the Game-Theoretic Structure of Public-Good Economies," International Journal of Game Theory, Springer;Game Theory Society, vol. 26(4), pages 455-472.
    • Handle: RePEc:spr:jogath:v:26:y:1998:i:4:p:455-472
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    Cited by:

    1. is not listed on IDEAS
    2. Rebelo, S., 1997. "On the Determinant of Economic Growth," RCER Working Papers 443, University of Rochester - Center for Economic Research (RCER).
    3. Amigues, Jean-Pierre & Favard, Pascal & Gaudet, Gerard & Moreaux, Michel, 1998. "On the Optimal Order of Natural Resource Use When the Capacity of the Inexhaustible Substitute Is Limited," Journal of Economic Theory, Elsevier, vol. 80(1), pages 153-170, May.
    4. Bergin, James & Duggan, John, 1999. "An Implementation-Theoretic Approach to Non-cooperative Foundations," Journal of Economic Theory, Elsevier, vol. 86(1), pages 50-76, May.

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