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Internal Organization of Firms and Cartel Formation

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  • Kuipers, Jerome
  • Olaizola Ortega, María Norma

Abstract

We introduce and characterize a new solution concept for TU games. The new soluction is called SD-prenucleolus and is a lexicographic value although is not a weighted prenucleolus. The SD-prenucleolus satisfies several desirable poperties and is the only known solution that satisfies core stability, strong aggegate monotonicity and null player out property in the class of balanced games. The SD-prenucleolus is the only known solution that satisfies core stability continuity and is monotonic in the class of veto balanced games.

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  • Kuipers, Jerome & Olaizola Ortega, María Norma, 2004. "Internal Organization of Firms and Cartel Formation," IKERLANAK 6231, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    • Handle: RePEc:ehu:ikerla:6231
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    References listed on IDEAS

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