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The Weak Sequential Core for Two-period Economies

Author

Listed:
  • Predtetchinski A.

    (Universiteit Maastricht)

  • Herings P.J.J.

    (Universiteit Maastricht)

  • Perea A.

    (Universiteit Maastricht)

Abstract

We adapt the core concept to deal with economies in which trade in assets takes place at period 1, uncertainty about asset payoffs is released at period 2, and agents trade in commodities afterwards. We define the weak sequential core as the set of allocations that are stable against coalitional deviations ex ante, and moreover cannot be improved upon by any coalition once the uncertainty is being released. We restrict ourselves to credible deviations, i.e. coalitional deviations at period 1 that cannot be counterblocked by some subcoalition at period 2. We study the relationship of the resulting core concept with other sequential core concepts, give sufficient conditions under which the weak sequential core is non-empty, but show that it is possible to give reasonable examples where it is empty.

Suggested Citation

  • Predtetchinski A. & Herings P.J.J. & Perea A., 2002. "The Weak Sequential Core for Two-period Economies," Game Theory and Information 0203008, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpga:0203008
    Note: Type of Document - pdf.format; pages: 30 ; figures: included
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    Citations

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    Cited by:

    1. Imma Curiel, 2015. "Compensation rules for multi-stage sequencing games," Annals of Operations Research, Springer, vol. 225(1), pages 65-82, February.
    2. Helga Habis & P. Herings, 2013. "Stochastic bankruptcy games," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(4), pages 973-988, November.
    3. László Á. Kóczy, 2018. "Partition Function Form Games," Theory and Decision Library C, Springer, number 978-3-319-69841-0, March.
    4. Predtetchinski, Arkadi, 2007. "The strong sequential core for stationary cooperative games," Games and Economic Behavior, Elsevier, vol. 61(1), pages 50-66, October.
    5. Habis, Helga & Herings, P. Jean-Jacques, 2011. "Core concepts for incomplete market economies," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 595-609.
    6. Helga Habis & P. Jean-Jacques Herings, 2010. "A Note On The Weak Sequential Core Of Dynamic Tu Games," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 12(04), pages 407-416.
    7. Németh, Tibor & Pintér, Miklós, 2017. "The non-emptiness of the weak sequential core of a transferable utility game with uncertainty," Journal of Mathematical Economics, Elsevier, vol. 69(C), pages 1-6.
    8. Ehud Lehrer & Marco Scarsini, 2013. "On the Core of Dynamic Cooperative Games," Dynamic Games and Applications, Springer, vol. 3(3), pages 359-373, September.
    9. Chander, Parkash & Wooders, Myrna, 2020. "Subgame-perfect cooperation in an extensive game," Journal of Economic Theory, Elsevier, vol. 187(C).
    10. Predtetchinski, Arkadi & Herings, P. Jean-Jacques & Peters, Hans, 2002. "The strong sequential core for two-period economies," Journal of Mathematical Economics, Elsevier, vol. 38(4), pages 465-482, December.
    11. Habis, Helga & Herings, P. Jean-Jacques, 2011. "Transferable utility games with uncertainty," Journal of Economic Theory, Elsevier, vol. 146(5), pages 2126-2139, September.
    12. Habis, H. & Herings, P.J.J., 2009. "Cooperation under incomplete contracting," Research Memorandum 026, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    13. Hellman, Ziv, 2008. "Bargaining Set Solution Concepts in Dynamic Cooperative Games," MPRA Paper 8798, University Library of Munich, Germany.
    14. Routledge, R.R., 2014. "Deviations, uncertainty and the core," Games and Economic Behavior, Elsevier, vol. 88(C), pages 286-297.
    15. Kadam, Sangram V. & Kotowski, Maciej H., 2018. "Time horizons, lattice structures, and welfare in multi-period matching markets," Games and Economic Behavior, Elsevier, vol. 112(C), pages 1-20.
    16. Predtetchinski, Arkadi & Herings, P. Jean-Jacques & Peters, Hans, 2002. "The strong sequential core for two-period economies," Journal of Mathematical Economics, Elsevier, vol. 38(4), pages 465-482, December.
    17. Parkash Chander & Myrna Wooders, 2016. "The Subgame Perfect Core," Vanderbilt University Department of Economics Working Papers 16-00006, Vanderbilt University Department of Economics.
    18. Ziv Hellman, 2009. "Bargaining Set Solution Concepts in Repeated Cooperative Games," Discussion Paper Series dp523, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.

    More about this item

    Keywords

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    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets

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