Blocking Efficacy of Small Coalitions in Myopic Economies

Carlos Hervés-Beloso, Emma Moreno-García, Carmelo Núñez-Sanz, Mário Páscoa

Research output: Contribution to journalArticle

15 Citations (Scopus)

Abstract

We consider a continuum economy with infinitely many commodities and show that, for any positive ε, the core of the economy coincides with the set of allocations which are not blocked by any coalition with measure less than ε. Actually, our main result is an extension of Grodal's (1972, Econometrica40, 581-583) result and, therefore, Schmeidler's (1972, Econometrica40, 579-580) result to economies whose commodity space is ℓ, for myopic preferences. Journal of Economic Literature Classification Numbers: C71, D51.

Original languageEnglish
Pages (from-to)72-86
Number of pages15
JournalJournal of Economic Theory
Volume93
Issue number1
DOIs
Publication statusPublished - Jul 2000

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Keywords

  • Coalitions
  • Continuum economy
  • Core
  • Perfect competition
  • Walrasian equilibrium

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