The core of an economy consists of those states of the economy which no group of agents can ‘improve upon’. The core is a rather theoretical fundamental equilibrium concept. Indeed, the core provides a theoretical foundation of a more operational equilibrium concept, namely, the competitive equilibrium, which is a very different notion of equilibrium.
KeywordsBarter Coalitions Cobb–Douglas functions Competitive equilibrium Continuum of agents Cooperative game theory Cooperative game theory (core) Cores Edgeworth, F. Hildenbrand, W. Initial endowments Large economies Limit economy Limit theorems Minkowski’s separation theorem Pareto efficiency Preference relations Replica economies Type economies
- There is an extensive literature on limit theorems on the core which contains important generalizations of the results given here. For a general reference we refer to Hildenbrand (1974) or (1982), Mas-Colell (1985), Anderson (1981) and the references given there.Google Scholar
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