Cores of games with positive externalities

Parkash Chander

No 2010004, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper introduces a core concept, called the γ-core, in the primitive framework of a strategic game. For a certain class of strategic games, it is a weaker concept than the strong Nash equilibrium, but in general stronger than the conventional α- and β- cores. We argue that the coalition formation process is an infinitely repeated game and show that the grand coalition forms if the γ-core is nonempty. This is a weaker sufficient condition than the previous such condition (Maskin (2003, Theorem 4)). As an application of this result, it is shown that the γ- core of an oligopolistic market is nonempty and thus the grand coalition forms.

Keywords: positive externalities; strategic game; core; repeated game; coalition formation (search for similar items in EconPapers)
JEL-codes: C7 D62 (search for similar items in EconPapers)
Date: 2010-01-01
New Economics Papers: this item is included in nep-cdm, nep-gth, nep-net and nep-sea
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Citations: View citations in EconPapers (5)

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