TEL  Vol.4 No.4 , April 2014
The Menu-Induced Core of an Economy with an Excludable Public Good
Author(s) Toshiyuki Hirai*
ABSTRACT

This paper introduces a core concept in an economy with an excludable public good. In the economy, we assume that each coalition is allowed to achieve an allocation via a menu, a kind of a nonlinear price. Our core concept is called the menu-induced core that is defined as the set of allocations achievable by menus that are robust against all coalitional improvements achieved via menus. We show that the menu-induced core is nonempty. We also investigate certain properties of the menu-induced core that show the difference between the menu-induced core and the core defined in a standard way.


Cite this paper
Hirai, T. (2014) The Menu-Induced Core of an Economy with an Excludable Public Good. Theoretical Economics Letters, 4, 289-295. doi: 10.4236/tel.2014.44039.
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