A Generalised $\hat{I}»$-Core Concept for Normal Form Games

Abstract

In this note we develop a generalisation of the $\hat{I}»$-Core solution for non-cooperative games in normal form. We show that this generalised $\hat{I}»$-Core is non-empty for the class of separable games that admit a socially optimal Nash equilibrium. Examples are provided that indicate that non-emptiness of the generalised $\hat{I}»$-Core cannot be expected for large classes of normal form games.