Abstract: The "law of scarcity" is that scarceness is rewarded; recall, for example, the diamonds and water paradox. In this paper, furthering research initiated in Kelso and Crawford (1982, Econometrica 50, 1483-1504) for matching models, we demonstrate a law of scarcity for cores and approximate cores of games.
Keywords: cooperative games, games with side payments (TU games), cyclic monotonicity, law of demand, approximate cores, effective small groups, parameterized collections of games.
JEL Classification: C7;D7