Cooperative oligopoly games: a probabilistic approach

We analyze the core of a cooperative Cournot game. We assume that when contemplating a deviation, the members of a coalition assign positive probability over all possible coalition structures that the nonmembers can form. We show that when the number of firms in the market is sufficiently large then the core of the underlying cooperative game is non-empty. Moreover, we show that the core of our game is a subset of the γ core.