"Some Strictly Convex Characteristic Functions with a Non Empty Core" by Lester G Telser

Selected Works of Lester G Telser

Unpublished Paper

Some Strictly Convex Characteristic Functions with a Non Empty Core

(2018)

Lester G Telser

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Abstract

In standard core theory no participant receives a return above his incremental contribution to the total return. According to standard economic theory applied to a production function the wage rate equals the value of the marginal product. Thus the incremental contribution of each participant equals his return. This note has a new result. It uses core theory to study a function such that the sum of the incremental contributions exceed the total return. Hence feasible payments must fall short of the total incremental contributions. Even so core theory shows a class of convex characteristic functions where everybody gets a return below his incremental contribution to the total and these returns are in the core.

Keywords

cooperative game theory,
core models

Disciplines

Economic Theory

Publication Date

April 2, 2018

Citation Information

Lester G Telser. "Some Strictly Convex Characteristic Functions with a Non Empty Core" (2018)
Available at: http://works.bepress.com/lester_telser/84/