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Endowments, Exclusion, and Exchange
Author(s) -
Balbuzanov Ivan,
Kotowski Maciej H.
Publication year - 2019
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.3982/ecta15676
Subject(s) - core (optical fiber) , social exclusion , property (philosophy) , property rights , economics , exchange economy , class (philosophy) , distribution (mathematics) , public good , microeconomics , economic growth , mathematics , mathematical analysis , philosophy , materials science , epistemology , artificial intelligence , computer science , composite material
We propose a new solution for discrete exchange economies and resource‐allocation problems, the exclusion core. The exclusion core rests upon a foundational idea in the legal understanding of property, the right to exclude others. By reinterpreting endowments as a distribution of exclusion rights, rather than as bundles of goods, our analysis extends to economies with qualified property rights, joint ownership, and social hierarchies. The exclusion core is characterized by a generalized top trading cycle algorithm in a large class of economies, including those featuring private, public, and mixed ownership. It is neither weaker nor stronger than the strong core.