On the estimation of the core for TU games

Abstract

The core of a transferable utility (TU) game, if it is not empty, is prescribed by the set of all stable allocations. The exact determination of the core reaches exponential time complexity. Therefore, its exact computation is often avoided as the number of players increases. In this work, we propose an estimator for the core of a TU game based on the statistical theory of set estimation. Concretely, we provide a core reconstruction that is obtained in polynomial time for general dimension. Additionally, convergence rates for the estimation error are derived. Finally, a consistent core-center estimator is established as a geometrical application of this methodology.