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Core and stable sets of exchange economies with externalities
Journal article   Peer reviewed

Core and stable sets of exchange economies with externalities

Maria Gabriella Graziano, Claudia Meo and Nicholas C. Yannelis
Economic theory bulletin, Vol.11(1), pp.27-44
2023
DOI: 10.1007/s40505-022-00239-x

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Abstract

It is known that the core of an economy with externalities may be empty. We consider two concepts of dominance that allow us to prove that the set formed by individually rational, Pareto optimal allocations is stable and coincides with the core that, consequently, is non-empty.
Economics Social Sciences Business & Economics

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