erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

Recursive Core of a Coalitional OLG Game with Externalities

Milan Horniacek (Slovak University of Technology, Slovak Republic)

Abstract  

We prove a sufficient condition for nonemptiness of the recursive strong beta-core of a discrete time stochastic NTU coalitional game with overlapping generations of finitely lived players and externalities. The recursive strong beta-core is the set of pairs of action stream (a sequence of players' action vectors) and consumption stream (a sequence of players' consumption vectors) generated by it against which there does not exist a weak beta-objection by any coalition starting from any date-event. We outline an application of our result to dynamics of military alliances.

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