Abstract:
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In this paper, we characterize the non-emptiness of the equity core (Selten, 1978)
and provide a method, easy to implement, for computing the Lorenz-maximal allocations
in the equal division core (Dutta-Ray, 1991). Both results are based on a geometrical
decomposition of the equity core as a finite union of polyhedrons.
Keywords: Cooperative game, equity core, equal division core, Lorenz domination.
JEL classification: C71 |