The Veto Mechanism Revisited

• Autor(a) principal: Hervés-Beloso, Carlos
• Data de Publicação: 1997
• Outros Autores: Moreno-García, Emma
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/89007
• topic: Core; Fuzzy core; Edgeworth equilibrium; Exchange economy; Continuum economy; Walrasian equilibrium; Coalitions

It is difficult to argue that coalition formation is costless and freely. Thus, in this paper, only a subset of the set of all possible coalitions in an economy or a game, is considered to be really formed. The consequences that such restriction has on the veto mechanism are analyzed. The restricted veto mechanism is extended to the pondered veto mechanism with rates of participations of the agents or the players. It is shown that it is enough to consider the veto power of a subset S of coalitions, which differs from the set of all coalitions, in order to obtain the Walrasian allocations or, alternatively, the Edgeworth equilibria. In particular, it is shown that the pondered veto power, with strictly positive rates of participation, of only one coalition, namely, the coalition of all agents, blocks any non Walrasian allocation.