Contractual M-Core and Equilibrium Allocations

Abstract

The paper deals with an equilibrium characterization of so-called totally contractual allocations. As a consequence of the characterization obtained, a rather strong coalitional stability of equilibrium allocations is established. In view of the complicated logical structure of contractual blocking, we pay strong attention to pure descriptive aspects of the concepts under consideration. Quite simple sufficient conditions guaranteeing the coincidence of the totally contractual core and the set of Walrasian equilibrium allocations are established, and the structure of the domination relations induced by several rules of breaking contracts is studied. The game-theoretic approach elaborated in the paper rests on the reduction of the original blocking to some simpler domination relations in cooperative games associated with the contractual blocking in question. Bibliography: 3 titles.