Egalitarian Solutions of Large Games:
I. A Continuum of Players
Sergiu Hart and Andreu Mas-Colell
This is the first of two papers
devoted to the study of egalitarian
nontransferable utility (NTU)
a large number of players. This paper is concerned with the construction
of egalitarian solutions for the limit situation with a continuum of players.
We build on the concept of the Potential introduced in Hart--Mas-Colell (1989)
and exploit partial differential equations techniques.
In particular, we associate to the egalitarian solutions a variational problem
which may be viewed as a generalization --
to the non-transferable utility context --
of the diagonal principle of Aumann-Shapley (1974) in the
transferable utility setting.
Mathematics of Operations Research 20 (1995), 4, 959-1002