Assume That the Characteristic Functions for Individuals 1,2, and 3

question 41

Multiple Choice

Assume that the characteristic functions for individuals 1,2, and 3 are given by V(1) = $20, V(2) = $16, and V(3) = $10 respectively, and value created by the coalition V(1,2,3) = $60.If the payoff to individual 1 is $30, and that to individuals 2 and 3 is $15 each, which of the following statements is true?

• A)The given allocation is within the core.
• B)2 and 3 will withdraw from the coalition.
• C)2 will block the imputation.
• D)This allocation is individually rational for all.

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