
doi: 10.2139/ssrn.406400
handle: 10419/118063
We identify the core as an appealing stability concept of cooperative game theory, but argue that the non-cooperative approach has conceptual advantages in the context of economic problems with externalities. Therefore, we derive a non-cooperative foundation of core-stability for positive externality NTU-games. First, in the spirit of Hart/Kurz (1983), we develop a game that we call - game and show that strong Nash equilibria coalition structures in this game are identical to - and - core stable coalition structures. Second, as a by-product of the definition of the - game, we develop an extension called an - game. Finally, we compare equilibria in the - and - game with those in the - and - game of Hart and Kurz (1983).We identify the core as an appealing stability concept of cooperative game theory, but argue that the non-cooperative approach has conceptual advantages in the context of economic problems with externalities.
Core-stability, ddc:330, Transferierbarer Nutzen, Koalition, Externer Effekt, non-cooperative game theory, C72, Nichtkooperatives Spiel, Core-stability, non-cooperative game theory, positive externality games, Core, Theorie, positive externality games, jel: jel:C72
Core-stability, ddc:330, Transferierbarer Nutzen, Koalition, Externer Effekt, non-cooperative game theory, C72, Nichtkooperatives Spiel, Core-stability, non-cooperative game theory, positive externality games, Core, Theorie, positive externality games, jel: jel:C72
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