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The core and related polyhedra

Many solution objects are defined as polyhedra.

Core

Allocations in the core satisfy:

  • Efficiency: \(\sum_i x_i = v(N)\)
  • Coalitional rationality: \(x(S) \ge v(S)\) for every non-empty proper coalition \(S\)

Definition (core)

The core of a TU game \((N,v)\) is the set of allocations \(x \in \mathbb{R}^n\) such that:

\[\sum_{i \in N} x_i = v(N),$$ and for every non-empty proper coalition $S$, $$x(S) = \sum_{i \in S} x_i \ge v(S).\]

Intuition

No coalition can profitably deviate: every coalition receives at least what it can guarantee on its own.

\(\epsilon\)-core / least-core

The \(\epsilon\)-core relaxes coalitional rationality by \(\epsilon \ge 0\):

  • \(x(S) \ge v(S) - \epsilon\)

The least-core chooses the smallest possible \(\epsilon\) (computed via LP when SciPy is available).

Imputation set

  • Efficiency + individual rationality (\(x_i \ge v(\{i\})\))

Definition (imputation set)

The imputation set is:

\[I(v) = \left\{x \in \mathbb{R}^n : \sum_{i \in N} x_i = v(N),\; x_i \ge v(\{i\})\;\forall i\right\}.\]

For implementation-oriented details, see ../library/geometry.md.