CORE AND STABLE SETS OF LARGE GAMES ARISING IN ECONOMICS

It is shown that the core of a non-atomic glove-market game which is d efined as the minimum of finitely many non-atomic probability measures is a von Neumann-Morgenstern stable set. This result is used to chara cterize some stable sets of large games which have a decreasing return s to scale property. We also study exact non-atomic glove-market games . In particular we show that in a glove-market game which consists of the minimum of finitely many mutually singular non-atomic measures, th e core is a von Neumann-Morgenstern stable set iff the game is exact. (C) 1996 Academic Press, Inc.