A COMPARISON BETWEEN THE CORE AND THE MONOPOLY SOLUTIONS IN A MIXED EXCHANGE ECONOMY

Using a mixed market model for analyzing imperfectly competitive econo mies, we maximize the oligopolists' Welfare Function, given individual rationality and feasibility constraints. We prove that solutions belo ng to the core for a large class of economies. This class includes, in particular, every monopoly having a single type of small traders. Not e that all such solutions yield the large trader, utility-wise, strict ly more than at any monopoly solution, where the monopolist plays stra tegically, and the ocean of small traders act as being as price-takers .