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Endowments, Exclusion, and Exchange

Author

Listed:
  • Balbuzanov, Ivan

    (University of Melbourne)

  • Kotowski, Maciej H.

    (Harvard University)

Abstract

We propose a new cooperative solution for discrete exchange economies and resource allocation problems, the exclusion core. The exclusion core is neither weaker nor stronger than the (strong) core and it rests upon a foundational idea in the legal understanding of property, the right to exclude others. By reinterpreting endowments as a distribution of exclusion rights, we can extend our analysis to economies with qualified property rights and social hierarchies. The exclusion core characterizes a generalized top trading cycle algorithm in a large class of economies, including those featuring private and public ownership.

Suggested Citation

  • Balbuzanov, Ivan & Kotowski, Maciej H., 2017. "Endowments, Exclusion, and Exchange," Working Paper Series rwp17-016, Harvard University, John F. Kennedy School of Government.
  • Handle: RePEc:ecl:harjfk:rwp17-016
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    References listed on IDEAS

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    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law

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