STRATEGIC CORES IN A PUBLIC GOODS ECONOMY

摘要

In a public goods economy with linear production technologies, we consider a strategic game with coalitions in which each player is required as a strategy to reallocate his or her own initial endowments for exchange and production. Allowing negative strategies, i.e., reallocations with negative amount, we show that the core of this economy can be characterized as the set of allocations corresponding to strategy profiles for which no coalition has a self-supporting deviation, i.e., a deviation that is not free-riding on the allocations made by the complementary coalition. Moreover, restricting strategies to be nonnegative, the classical β-core and α-core both generate precisely the core allocations of the economy.