On reduced games and the lexmax solution

Identificador:  PC:2244

Handle: https://hdl.handle.net/20.500.11797/PC2244

Autors:  Mauri Masdeu, Llúcia; Llerena Garrés, Francesc

Resum:
For a family of reduced games satisfying a monotonicity property, we introduced the reduced equal split-off set, an extension of the equal split-off set (Branzei et. al, 2006), and study its relation with the core. Regardless of the reduction operation we consider, the intersection between both sets is either empty or a singleton containing the lexmax solution (Arin et al., 2008). We also provide a procedure for computing the lexmax solution for a class of games that includes games with large core (Sharkey, 1982). [JEL Classification: C71]