How to read this

Replicate the economy: people like Alf and like Bill. If a core allocation is not competitive, the line from through gives one type a better bundle near . With , all of that type and of the other can afford it from their own endowments: they block .

  • Raise : the core shrinks towards the competitive equilibrium.
  • Move towards the equilibrium: must get closer to 1, so the economy must be larger.

Size of the economy

Allocation in the core

Economy

The core of the N-replica economy

What survives as the economy grows

The blocking coalition