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the agents' preferences in Table 3.1, we must not have x 1 ,{s } x .
Hence o 1 cannot be tennis. By the same token, it can be proved
that o 2 , o 3 ,and o 4 cannot be tennis. Therefore x does not exist
and x is in the core. Actually, it follows that the core is a singleton
{ (movie , movie , movie , movie) } .
It should be noted that even if the core is non-empty, it does not
necessary mean that the grand coalition N is stable. In the scenario
depicted in Example 3.17, although the core contains the consequence
{
, it does not guarantee that the grand
coalition N will be stable if the prevailing state s = Good is not a
common knowledge. For example, if agent A 4 ,accordingtohisown
limited experience, concludes that the quality of the movie is bad, then
the grand coalition is not attractive to him, and agent A 4 will prefer
to go to a tennis club to play tennis with someone else. Intuitively, we
will agent A 4 has made a decision based on his 'incorrect belief'. More
precisely, agent A 4 in this situation has got an experience so limited
that he forms an opinion B 4 =
(movie , movie , movie , movie)
}
about the quality of the movie,
which, unfortunately, is inconsistent with the prevailing state, which
in turn causes A 4 nottoprefertoseethemovie.
{
Bad
}
Example 3.18 We consider again the scenario in Section 3.2 and its
formal formulation in Example 3.5. Assume that the prevailing state is
s = Average instead. Intuitively, in this case agents A 3 and A 4 would
prefer playing tennis, hence the grand coalition with consequence
x =(movie , movie , movie , movie)
is no longer stable. Formally, we say that in this case
x =(movie , movie , movie , movie)
is not in the course. To show that this is the case, consider
C = { 3 , 4 }.
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