Core Equivalence Theorem with Production

In production economies, the extent to which non-equilibria are blocked dependson the allocation of control rights among shareholders, because a blocking coalition’sresources are affected by the firms it jointly owns with outsiders. We formulate a notionof blocking that takes such interdependency problem into account, and we prove ananalog of the Debreu-Scarf theorem for replica production economies. Our theoremdiffers from theirs in using an additional assumption, which we argue is indispensableand is driven by the interdependency problem.[...]