A Coase Theorem based on a new concept of the core

Charles Zheng

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: The core is reformulated to incorporate the externality typical in strategic form games. Any coalition of players may deviate by trying to commit to a profile of actions different from a status quo. The outsiders of the coalition may take a coordinated measure, incentive-feasibly for themselves, to preempt the coalition's commitment. If a coalition succeeds in committing to its action profile, the outsiders' reactions constitute a core solution among themselves. A core solution is robust against the deviations of coalitions which expect such preemptive and reactive responses from the other players. In an externality problem where pollution is the dominant action, the core is nonempty. In any two-player strategic form game, the core is also nonempty.

Date: 2010-05-14
References: Add references at CitEc
Citations:

Downloads: (external link)
https://dr.lib.iastate.edu/server/api/core/bitstre ... ffa6202b5cdd/content
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Working Paper: A Coase Theorem Based on a New Concept of the Core (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:201005140700001134

Access Statistics for this paper

More papers in ISU General Staff Papers from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().