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Existence of a Core When There Are Increasing Returns
W. W. Sharkey
Abstract
A model of a cooperative game without side payments is used to study the core of an economy subject to increasing returns. The major result is that quasi-convexity and subhomogeneity of the cost function along with restrictive but plausible conditions on preferences are sufficient for the existence of a core. Implications are considered for both partial and general equilibrium analysis.
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