Representation of Non-transferable Utility Games by Coalition Production Economies
Meiji University - School of Political Science and Economics
December 28, 2012
We prove that every compactly generated non-transferable utility (NTU) game can be generated by a coalition production economy. The set of Walrasian payoff vectors for our induced coalition production economy coincides with the inner core of the balanced cover of the original game. This equivalence depends heavily on our representation. We exemplify that this equivalence need not hold in other representations. We also give a sufficient condition for the existence of a Walrasian equilibrium for our induced coalition production economy.
Number of Pages in PDF File: 31
Keywords: Inner core, coalition production economy, balancedness, Walrasian equilibrium
JEL Classification: D51, C71
Date posted: September 19, 2011 ; Last revised: December 28, 2012