Article ID: | iaor20041727 |
Country: | United States |
Volume: | 20 |
Issue: | 4 |
Start Page Number: | 959 |
End Page Number: | 1002 |
Publication Date: | Nov 1995 |
Journal: | Mathematics of Operations Research |
Authors: | Hart S., MasColell A. |
This is the first of two papers devoted to the study of egalitarian solutions for nontransferable utility games with a large number of players. This paper is concerned with the construction of egalitarian solutions for the limit Situation with a continuum of players. We build on the concept of the Potential introduced in Hart and MasColell and exploit partial differential equations techniques. In particular, we associate to the egalitarian solutions a variational problem which may be viewed as a generalization – to the nontransferable utility context – of the diagonal principle of Aumann and Shapley in the transferable utility setting.