Approximate Cores of a General Class of Economies. Part I: Replica Games, Externalities, and Approximate Cores
Sufficient conditions are demonstrated for the non-emptiness of asymptotic cores of sequences of replica games, i.e., for all sufficiently large replications, the games have non-empty approximate cores and the approximation can be made arbitrarily "good." The conditions are simply that the games are superadditive and satisfy a very non-restrictive "per-capita" boundedness assumption (these properties are satisfied by games derived from well-known models of replica economies). It is argued that the results can be applied to a broad class of games derived from economic models, including ones with external economies and diseconomies, indivisibilities and non-convexities. To support this claim, in Part I applications to an economy with local public goods are provided and in Part II, to a general model of a coalition production economy with remarkably few restrictions on production technology sets and with (possibly) indivisibilities in consumption. Additional examples in Part I illustrate the generality of the result.
|Date of creation:||Feb 1982|
|Date of revision:|
|Publication status:||Published in Mathematical Social Sciences (1983), 6: 27-48|
|Contact details of provider:|| Postal: Yale University, Box 208281, New Haven, CT 06520-8281 USA|
Phone: (203) 432-3702
Fax: (203) 432-6167
Web page: http://cowles.yale.edu/
More information through EDIRC
|Order Information:|| Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA|
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.:
- Boehm, Volker, 1974. "The Limit of the Core of an Economy with Production," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 15(1), pages 143-48, February.
- Martin Shubik, 1969. "The 'Bridge Game' Economy," Cowles Foundation Discussion Papers 267, Cowles Foundation for Research in Economics, Yale University.
- Mas-Colell, Andreu, 1980. "Noncooperative approaches to the theory of perfect competition: Presentation," Journal of Economic Theory, Elsevier, vol. 22(2), pages 121-135, April.
- Sondermann, Dieter, 1974. "Economies of scale and equilibria in coalition production economies," Journal of Economic Theory, Elsevier, vol. 8(3), pages 259-291, July.
- Novshek, William & Sonnenschein, Hugo, 1978. "Cournot and Walras equilibrium," Journal of Economic Theory, Elsevier, vol. 19(2), pages 223-266, December.
- Wooders, Myrna Holtz, 1983. "The epsilon core of a large replica game," Journal of Mathematical Economics, Elsevier, vol. 11(3), pages 277-300, July.
- Milleron, Jean-Claude, 1972. "Theory of value with public goods: A survey article," Journal of Economic Theory, Elsevier, vol. 5(3), pages 419-477, December.
- Shapley, Lloyd S & Shubik, Martin, 1969. "On the Core of an Economic System with Externalities," American Economic Review, American Economic Association, vol. 59(4), pages 678-84, Part I Se.
- Wooders, Myrna Holtz, 1988. "Stability of jurisdiction structures in economies with local public goods," Mathematical Social Sciences, Elsevier, vol. 15(1), pages 29-49, February.
- Wooders, Myrna, 1980. "The Tiebout Hypothesis: Near Optimality in Local Public Good Economies," Econometrica, Econometric Society, vol. 48(6), pages 1467-85, September.
- Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May.
- Herbert E. Scarf, 1965. "The Core of an N Person Game," Cowles Foundation Discussion Papers 182R, Cowles Foundation for Research in Economics, Yale University.
- S. C. Littlechild, 1975. "Common Costs, Fixed Charges, Clubs and Games," Review of Economic Studies, Oxford University Press, vol. 42(1), pages 117-124.
When requesting a correction, please mention this item's handle: RePEc:cwl:cwldpp:618. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matthew C. Regan)
If references are entirely missing, you can add them using this form.