Horse trading game with large seller

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Horse trading game with large seller:- 

Consider the variant of the horse trading game in which there is a single owner who has two horses.  Assume that the owner's payoff is σ1 + r if she keeps one of her horses and 2σ1 + r if she keeps both of them, where r is the amount of money she receives. Assume that there are at least two non owners, both of whose values of a horse exceed σ1. Find the core of this game. (Do all trades take place at the same price, as they do in a competitive equilibrium?)

Reference no: EM131252994

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