Xiong, Siyang; Zheng, Charles Zhoucheng

WP #07003, January 2007

In production economies, the extent to which non-equilibria are blocked depends on specific rules that allocate authority among shareholders, because a blocking coalition's resources are affected by the firms it jointly owns with outsiders. Based on a notion of stochastic blocking, we extend Anderson's (1978) core convergence theorem to production economies where preferences and technologies are not necessarily convex.

JEL Classification: D50

Keywords: core, coalition, production, blocking, core convergence, nonconvexity, stochastic blocking

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