This paper first establishes a new core theorem using the concept of generated payoffs: the TU (transferable utility) core is empty if and only if the maximum of generated payoffs (mgp) is greater than the grand coalition’s payoff v(N), or if and only if it is irrational to split v(N). It then...

The envelope theorem is a genuine workhorse of economic analysis. Typically, this theorem requires that the choice variables be continuous. This paper derives envelope theorems, previously unavailable in the literature, for use with integer and discrete choice variables. The authors' results,...

A class of industrial markets (such as the international oil market) is characterized by the coexistence of strategic behavior and collusive behavior: firms are divided into several cartels and each cartel maximizes its joint profit given the outsiders' supply. No previous lit.erature has done...