# The Core of a Partition Function Game

Working paper

Publisher:

FEEM

Year:

2000

We consider partition function games and introduce new deﬁni- tions of the core that include the eﬀects of externalities. We assume that all players behave rationally and that all stable outcomes arising are consistent with the appropriate generalised concept of the core. The result is a recursive deﬁnition of the core where residual subgames are considered as games with fewer players and with a partition function that captures the externalities of the deviating coalition. Some properties of the new concepts are discussed.