On f-Core Equivalence with General Widespread Externalities

This paper partially extends the f -core equivalence theorem of Hammond, Kaneko and Wooders (1989) for continuum economies with widespread externalities — i.e., those over which each individual has negligible control. Externalities need not result directly from trading activities. Neither free disposal of divisible goods nor monotone preferences are assumed. Instead, a slightly strengthened form of local non-satiation suffices. However, in general it is proved only that any f -core allocation is a compensated Nash– Walrasian equilibrium. Finally, the proof uses an elementary argument which does not rely on Lyapunov’s theorem or convexity of the integral of a correspondence w.r.t. a non-atomic measure. Journal of Economic Literature classifications: D50, C71.