When the number of agents in the economy approaches infinity, ________________ of allocation remain(s) in the core.
A) infinitely many types
B) only one type
C) exactly two types

Question

Quizplus · Accepted Answer

When the number of agents approaches infinity, the core becomes more stable and the number of allocation types that remain in the core reduces. Thus, only one allocation type remains in the core.

When the Number of Agents in the Economy Approaches Infinity