Subcalculus for set functions and cores of TU games.

Abstract

This paper introduces a subcalculus for general set functions and uses this framework to study the core of TU games. After stating a linearity theorem, we establish several theorems that characterize mea- sure games having finite-dimensional cores. This is a very tractable class of games relevant in many economic applications. Finally, we show that exact games with Þnite dimensional cores are generalized linear production games.TU games; non-additive set functions; subcalculus; cores