TY - JOUR
T1 - Formation of cartels in large markets
AU - Hart, Sergiu
PY - 1974/4
Y1 - 1974/4
N2 - The von Neumann-Morgenstern concept of solution is applied to nonatomic pure exchange markets consisting of a finite number of different types of trader, initially owning disjoint sets of goods. It is proved that if all traders of each type form a cartel and behave like a single (atomic) trader (their "representative"), then one gets solutions of the original market from those of the finite market of the representatives, and all solutions are obtained in this manner-i.e., the market must organize itself in cartels, and this will indeed be stable.
AB - The von Neumann-Morgenstern concept of solution is applied to nonatomic pure exchange markets consisting of a finite number of different types of trader, initially owning disjoint sets of goods. It is proved that if all traders of each type form a cartel and behave like a single (atomic) trader (their "representative"), then one gets solutions of the original market from those of the finite market of the representatives, and all solutions are obtained in this manner-i.e., the market must organize itself in cartels, and this will indeed be stable.
UR - http://www.scopus.com/inward/record.url?scp=0000873861&partnerID=8YFLogxK
U2 - 10.1016/0022-0531(74)90114-8
DO - 10.1016/0022-0531(74)90114-8
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AN - SCOPUS:0000873861
SN - 0022-0531
VL - 7
SP - 453
EP - 466
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 4
ER -