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The core is a notion of stability. An allocation x is in the core of a market if no set of agents can leave the
The core is a notion of stability. An allocation x is in the core of a market if no set of agents can leave the market with their initial houses and reallocate them among themselves (in any way, not necessarily consistent with equilibrium) so that all of them are better off than in x. Construct a market and show that its equilibrium is in the core.
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