Asymmetric duopoly and the core
Abstract It has recently been proposed that an exchange economy with “small” and “large” traders be represented by a measure space whose atoms represent the set of large traders and whose atomless part represents the set of small traders. For such mixed markets, the equivalence of the core and the set of competitive allocations, which holds when the set of atoms is of measure zero, no longer holds necessarily when this set has positive measure. However, if this set consists of identical traders, the equivalence is restored. The asymptotic analogs of these propositions are proved here.