The last essay is a survey and discussion about the core of an economy with production. With constant returns, equilibrium profits are zero and consequently the problem of profit distribution among members of a coalition does not arise. In the presence of decreasing returns to scale, however, profits are positive in general, and how to deal with them in the core is an unresolved issue. I discuss the flaws of current approaches and suggest several lines research on how to tackle the issues more effectively.
Political Science, Public Administration
University of Illinois - Urbana-Champaign
Networked Digital Library of Theses and Dissertations
University of Illinois at Urbana-Champaign