Chapter 15 The core in imperfectly competitive economies

This chapter discusses the core in imperfectly competitive economies, and presents the study of mixed markets that includes in particular the study of alternative cooperative game-theoretic solution concepts in the framework of mixed markets and the problem of approximating mixed markets by finite exchange economies. The chapter begins with a brief comment about some surprising features of the core's behavior in such markets. The model of mixed markets has also been used to examine the behavior of other cooperative concepts, like the von Neumann and Morgenstern (v-N.M.) solutions, the bargaining set, and the transferable Shapley value. This survey is mainly concerned with the concept of the core. The problem of approximating mixed markets via large, but finite, economies, in the tradition for the approximation of atomless economies is discussed in the chapter.