Every member of the core is as respectful as any other

Date

2018

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Source Title

Review of Economic Design

Print ISSN

1434-4742

Electronic ISSN

1434-4750

Publisher

Springer Verlag

Volume

22

Issue

1-2

Pages

55 - 65

Language

English

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Abstract

We strategically separate different core outcomes. The natural counterparts of a core allocation in a strategic environment are the α-core, the β-core and the strong equilibrium, modified by assuming that utility is transferable in a strategic context as well. Given a core allocation ω of a convex transferable utility (TU) game v, we associate a strategic coalition formation game with (v, ω) in which ω survives, while most other core allocations are eliminated. If the TU game is strictly convex, the core allocations respected by the TU-α-core, the TU-β-core and the TU-strong equilibrium shrink to ω only in the canonical family of coalition formation games associated with (v, ω). A mechanism, which strategically separates core outcomes from noncore outcomes for each convex TU game according to the TU-strong equilibrium notion is reported.

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