No. 726: On the Nonemptiness of Approximate Cores of Large Games
September 26, 2014
We provide a new proof of the non-emptiness of approximate cores of games with many players of a finite number of types. Earlier papers in the literature proceed by showing that, for games with many players, equal-treatment cores of their "balanced cover games", which are non-empty, can be approximated by equal-treatment ε-cores of the games themselves. Our proof is novel in that we rely on a fixed point theorem.
J.E.L classification codes: C71, C78, D71
Keywords:NTU games, Core, Approximate cores, Small group effectiveness, Coalition formation, Payoff dependent balancedness