core, theory of the

Developed by Irish-born economist and statistician Francis Edgeworth (1845-1926), theory of the core analyzes those parts of the economy which cannot be improved upon by individual or concerted action.

Theory of the core is a fundamental equilibrium aspect of modern macroeconomics, the core coinciding with a set of price equilibria under perfect competition.

Source:
F Y Edgeworth, Mathematical Psychics (1881);
W Hildenbrand, Core and Equilibrium of a Large Economy (Princeton, N.J., 1974)

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