Harsanyi Values of Large Economies: Non-Equivalence to Competitive Equilibria

Authors: 
Sergiu Hart & Andreu Mas-Colell
Abstract: 

We consider the relations between the competitive equilibria in economies with many agents and the value allocations of the resulting coalition games. In particular, we provide a (smooth and robust) example where the "value principle" does not hold for the Harsanyi NTU-value: there is a unique competitive equilibrium, which however does not belong to the (non-empty) set of Harsanyi value allocations.

Date: 
February, 1993
Published in: 
Games and Economic Behavior 13 (1996), 74-99
Number: 
25