On the Strong Time Consistency of the Core

Abstract

Time consistency is one of desirable properties for any solution of a cooperative dynamic game. If a solution is time-consistent, the players do not need to break a cooperative agreement. In this paper, we consider the core as the solution and establish conditions for its strong time consistency. When the core is not strongly time-consistent, we show that in some cases its elements can be yielded using a strongly time-consistent imputation distribution procedure. An explicit form of the procedure is given.