In production economies, the extent to which non-equilibria are blocked dependson the allocation of control rights among shareholders, because a blocking coalition’sresources are affected by the firms it jointly owns with outsiders. We formulate a notionof blocking that takes such...

The core is reformulated to incorporate the externality typical in strategic formgames. Any coalition of players may deviate by trying to commit to a profile of actionsdifferent from a status quo. The outsiders of the coalition may take a coordinatedmeasure, incentive-feasibly for themselves, to...