Core Implementation and Increasing Returns to Scale for Cooperation

Citation:

Winter, Benny Moldovanu, and Eyal. “Core Implementation And Increasing Returns To Scale For Cooperation”. Discussion Papers 1992. Web.

Abstract:

In this paper we analyze a simple non-cooperative bargaining model for coalition formation and payoff distribution in games with coalition form. We show that under our bargaining regime a cooperative game is core implementable if and only if it possesses the property of increasing returns to scale for cooperation. Namely, the game is convex. This offers a characterization of a purely cooperative notion by means of its non-cooperative foundations.

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