Homocores, cores and operational inefficiency in superadditive n-person games†

Defect in the core as a solution to n-person superadditive characteristic function games are examined and the process of achieving a ‘ reasonable- ’ core by changing the value of tho grand coalition is studied. A new unique solution concept, the ‘ homoeore ’, is proposed based on the ‘ homomollifier ’ notion interpreted as the result of implicit bargaining and weighted averages of coalitional worth. Thereby unreasonable cores are excluded but a core-like dominance property on the average is maintained. It also yields a measure of ‘ operational efficiency ’ where the game may be interpreted as an economic situation of decreasing marginal productivity