Econometrica: Jan 1974, Volume 42, Issue 1
The Stability of Edgeworth's Recontracting Process
Jerry R. GreenThe core is the set of all unblocked allocations. Implicit in this definition is the idea that if an allocation is proposed which could be blocked, some coalition will form and issue a counterproposal which it can enforce. A process of successive counterproposals based on this idea is shown to converge in a finite period of time (amost surely) to the core.
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