Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2001/iii/paper-31/6/b/solution

The core of a cooperative game is the set of efficient allocations for which every coalition receives at least its own value: for every . The singleton constraints give individual rationality, and the remaining proper-coalition inequalities are
Efficiency turns the second into ; together with this forces . Put and . The remaining constraints give , , and from . The first pair constraint adds only . Hence
Each point in this segment satisfies all singleton, pair, and grand-coalition constraints, so the description is sufficient as well as necessary. Its endpoints are and .

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