Powered by OpenAIRE graph
Found an issue? Give us feedback
addClaim

Sufficiently Specialized Economies Have Nonempty Cores

Authors: Roger Lagunoff;

Sufficiently Specialized Economies Have Nonempty Cores

Abstract

An economy with a nonempty core may plausibly be regarded as socially stable since there exists allocations against which no group in the economy wishes to "contract out". Aside from classical economies, it is not generally known what are the primitives of an economy that give rise to a nonempty core. This paper finds a class of perturbations that operate directly on economic primitives to generate a nonempty core.These perturbations are characterized by two properties which have economic content. The first is a notion of specialization -- individuals hold goods and essential inputs to productive processes that are not readily available elsewhere in the economy. The second is a curvature condition. Each agent's preferences must display sufficient curvature so that another person's specialized holdings are valued by the agent. It is shown that for any economy of a general class that includes possibly local nonconvexities and a wide variety of property rights configurations, if the economy is sufficiently specialized and the curvature condition is satisfied, then the corresponding NTU game is balanced. Hence, the economy has a nonempty core.

Related Organizations
Keywords

jel: jel:C7, jel: jel:D8

  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    1
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
Upload OA version
Are you the author of this publication? Upload your Open Access version to Zenodo!
It’s fast and easy, just two clicks!