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Full-Text Articles in Economic Theory
Core Size, Pricing, And Cost Structure, William K. Edwards
Core Size, Pricing, And Cost Structure, William K. Edwards
Economics Theses & Dissertations
This thesis presents a proof of an inverse limit theorem of the core of an economy. The implication of the theorem is that a larger core can be obtained by the formation of coalitions. A large core contains multiple Pareto optimal allocations from which society may select in order to maximize its welfare. Furthermore, this paper places an emphasis on pricing schemes that guarantee a core allocation under increasing returns to scale. Two pricing models are introduced that guarantee a non-empty core under increasing returns to scale.