THE CORE AND THE HEDONIC CORE - EQUIVALENCE AND COMPARATIVE STATICS

In large cooperative games core payoffs can be decomposed as a linear function on players' attributes which we call a 'hedonic payoff', prov ided that the worth of each coalition depends only on the sum of its m embers' attributes and payoffs are superadditive in attributes. If two large finite games weight a particular attribute differently, then th e hedonic payoff to that attribute is larger (no smaller) in the game that gives it less weight. The hedonic payoff can be interpreted as a competitive price function e.g. an anonymous wage function in coalitio n production economies and an anonymous system of admissions prices in club economies.