The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Core Convergence

  • Robert M. Anderson
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2706

Abstract

The core of an economy is the set of all economic outcomes that cannot be ‘blocked’ by any group of individuals; it is an institution-free concept. A Walrasian equilibrium is an economic outcome based on the institution of market-clearing via prices: each individual consumes his or her demand, taking prices as given, and the demand for each good equals the supply of that good. Core convergence asserts that, for sufficiently large economies, every core allocation approximately satisfies the definition of Walrasian equilibrium; it is an important test of the price-taking assumption inherent in the definition of Walrasian equilibrium.

Keywords

Convexity Cooperative game theory (core) Core convergence Core First Welfare Theorem Edgeworth, F. Y Second Welfare Theorem Separating hyperplane th Shapley–Folkman th Walrasian equilibrium 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Robert M. Anderson
    • 1
  1. 1.