Econometrica: Jul 1979, Volume 47, Issue 4
Existence of a Core When There Are Increasing Returns
https://doi.org/0012-9682(197907)47:4<869:EOACWT>2.0.CO;2-F
p.
869-876
W. W. Sharkey
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.Log In To View Full Content