Many economic models and optimization problems generate (endogenous) shadow prices - alias dual variables or Lagrange multipliers. Frequently the “slopes” of resulting price curves - that is, multiplier derivatives - are of great interest. These objects relate to the Jacobian of the...

The use of renewable resources is examined as a cooperative production game, the focus here being on fisheries. It is shown how pooling and exchange of individual endowments may open for substitutions that generate greater efficiency. We introduce a sharing rule that complies with the core...

Abstract. Exchange of risks is considered here as a transferableutility, cooperative game, featuring risk averse players. Like in competitive equilibrium, a core solution is determined by shadow prices on state-dependent claims. And like in finance, no risk can properly be priced only in terms...

This paper discusses coalition formation with side payments in markets for transferable property rights where strategic agents prevail on both sides of the market. Our concern is emissions permit trading under the Kyoto Protocol. While a seller cartel is not profitable, our analysis indicates...