A law of scarcity for games

Abstract

The "law of scarcity" is that scarceness is rewarded; recall, for example, the diamonds and water paradox. In this paper, furthering research initiated in Kelso and Crawford (1982, Econometrica 50, 1483-1504) for matching models, we demonstrate a law of scarcity for cores and approximate cores of games.cooperative games, games with side payments (TU games), cyclic monotonicity, law of demand, approximate cores, effective small groups, parameterized collections of games.