The asymptotic nucleolus of large monopolistic market games

We study the asymptotic nucleolus of differentiable monopolistic market gam es in continuum economies with a finite number of traders' types, and show that, under appropriate assumptions, it is the center of symmetry of the su bset of the core in which all the monopolists receive the same payoff: Thus , the nucleolus discriminates the traders in the atomless sector, whereas t he competitive equilibrium does not. Moreover, if there is a single syndica ted atom and a finite number of atomless sectors, the syndicate is treated more favorably under the asymptotic nucleolus than under the Shapley value associated with the pure monopolistic market. Journal of Economic Literatur e Classification Numbers: C71, D40. (C) 1999 Academic Press.