Download This PaperCoalition and Core in Resource Allocation and Exchange
28 Pages Posted: 3 Apr 2020 Last revised: 16 Apr 2020
Date Written: March 12, 2020
Abstract
In discrete exchange economies with possibly redundant and joint ownership, we propose new core notions in the conventional flavor by regarding endowments as rights to consume or trade with others. Our key idea is to identify self-enforcing coalitions and to redistribute their redundant property rights. Our first notion lies between the strong core and the weak core and is independent of Balbuzanov and Kotowski’s (2019a) exclusion core. Our second notion refines the first and the exclusion core by combining their different merits. We generalize the you request my house - I get your turn mechanism to find our core allocations.
Keywords: object allocation, redundant endowments, core, coalition
JEL Classification: C71, C78, D78
Suggested Citation: Suggested Citation