INTERPRETATION OF AUBIN FUZZY COALITIONS AND THEIR EXTENSION - RELAXATION OF FINITE EXCHANGE ECONOMICS

HUSSEINOV F.

JOURNAL OF MATHEMATICAL ECONOMICS, vol.23, no.5, pp.499-516, 1994 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 23 Issue: 5
  • Publication Date: 1994
  • Doi Number: 10.1016/0304-4068(94)90029-9
  • Journal Name: JOURNAL OF MATHEMATICAL ECONOMICS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.499-516
  • Keywords: EXCHANGE ECONOMY, PREFERENCE, ALLOCATION, CORE ALLOCATION, EQUILIBRIUM ALLOCATION, FUZZY COALITION, FUZZY CORE
  • Middle East Technical University Affiliated: No

Abstract

In this article a new interpretation of Aubin's fuzzy coalitions is given. This interpretation is based on associating each finite pure exchange economy with some large nonatomic economy. Then some connections between fuzzy core of finite economy and the core of associated nonatomic economy are established. From these results it is derived that for the case of convex preferences an allocation belonging to the fuzzy core is an equilibrium allocation. The assertion is not true in nonconvex case. We proceed by using the idea of J.P. Aubin - amplifying the class of coalitions in such a manner that an allocation unblocked by them is an equilibrium allocation also in the nonconvex case.