The Second Best Core, International Economic Review
An economy with a single output and input is considered for the case of economies of scale in production. Equilibria are studied for a cooperative game of joint production in which goods are allocated by a price system. The paper proposes a second best core in which allocations that are feasible for a coalition must be attainable by a price system. Existence is examined and properties of second best core allocations are analysed.
Spulber, Daniel. 1989. The Second Best Core. International Economic Review. 30(3): 623-631.