Economic Theory

, Volume 16, Issue 1, pp 181–198

The core in an oligopoly market with indivisibility

  • Jingang Zhao
Research Articles

DOI: 10.1007/s001990050332

Cite this article as:
Zhao, J. Econ Theory (2000) 16: 181. doi:10.1007/s001990050332


This paper studies the core in an oligopoly market with indivisibility. It provides necessary and sufficient conditions for core existence in a general m-buyer n-seller market with indivisibility. When costs are dominated by opportunity costs (i.e., a firm's variable costs are sufficiently small), the core condition can be characterized by the primitive market parameters. In a 3-2 market with opportunity cost, the core is non-empty if and only if the larger seller's opportunity cost is either sufficiently large or sufficiently small.

Keywords and Phrases: Core, Empty-core market, Indivisibility, Market equilibrium, Oligopoly. 
JEL Classification Numbers: C62, C71, D43, L13. 

Copyright information

© Springer-Verlag Berlin Heidelberg 2000

Authors and Affiliations

  • Jingang Zhao
    • 1
  1. 1.Department of Economics, Ohio State University, 1945 North High Street, Columbus, OH 43210-1172 USA (e-mail: