The Core

Last Updated on 19. April 2022 by Martin Schuster

The Core

The core comprises all distributions of values that are rational for the coalition parties. This means that accepting value distribution is beneficial for all participants in a coalition.

Option A

For example, three single apartments.

Cost for A Cost for B Cost for C

Option B

For example, one single apartment and one shared apartment.

Shared cost between two parties

Option C

For example, three students sharing one apartment.

Shared cost between three parties

The Core

The Core

Option A

Option B

Option C

Step 1: Calculate cost savings for every coalition.

Option A:

Option B:

Option C:

Step 2: Check Blockade through Option B.

Step 3: Check Blockade through Option A.

Step 4: Check for Pareto optimality