Core allocations and the dimension of the cone of efficiency price vectors (Q759626)

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scientific article; zbMATH DE number 3882153
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    Core allocations and the dimension of the cone of efficiency price vectors
    scientific article; zbMATH DE number 3882153

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      Core allocations and the dimension of the cone of efficiency price vectors (English)
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      1985
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      Let \((R_ 1,...,R_ k)\) be an arbitrary partition of the grand coalition in an atomless exchange economy with k ''large enough''. We prove that an optimal allocation x belongs to the core if and only if x cannot be improved upon by any coalition that includes at least one of the \(R'_ is\). k is ''large enough'' if \(k\geq r+1\), where r is the linear dimension of the cone P of the efficiency price vectors for x. Recall that it is always true that \(r\leq n\), when n is the number of commodities in the market, and that under differentiability and interiority \(r=1\); thus k can be chosen to be 2 (i.e., for any coalition R, an allocation x belongs to the core of the market if and only if x is not blocked by any coalition that either contains R or contains its complement.
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      improving upon
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      blocking coalitions
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      atomless exchange economy
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      optimal allocation
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      core
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      efficiency price vectors
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