Harsanyi Values of Large Economies:
Non-Equivalence to Competitive Equilibria

Sergiu Hart and Andreu Mas-Colell


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Abstract
We consider economies with many agents, and compare the competitive equilibria and the value allocations of the resulting coalitional games. In particular, we provide a (smooth and robust) example where the "value principle" does not hold for the Harsanyi NTU-value: there is a unique competitive equilibrium, which however does not belong to the (nonempty) set of Harsanyi value allocations.

Journal of Economic Literature Classification Numbers: C71, D51