Excess Functions and Nucleolus Allocations of Pure Exchange Economies
نویسنده
چکیده
Concepts from cooperative game theory have been applied to a wide range of economic problems with great success. The core equivalence and value equivalence theorems are outstanding examples of the fruitful synthesis of game theory and equilibrium analysis. These (and other results from cooperative game theory) have provided insight into market outcomes by investigating the problems in the absence of economic institutions or mechanisms. The nucleolus of a game with side payments, introduced by Schmeidler (1969), heretofore has not been applied to economic problems (although it was extended to games without side payments by Kalai (1975)). In this paper we will define a class of nucleolus allocations for a pure exchange economy.
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