"quasi-equilibrium" (or "compensated equilibrium"). Every equilibrium is a quasi-equilibrium, but the converse is not necessarily true. Extensions Accounting for strategic bargaining In the model, all producers and households are "price takers", meaning that they simply transact with the market using the price vector . In particular, behaviors such as cartel, monopoly, consumer coalition, etc are not modelled. Edgeworth's limit theorem shows that under certain stronger assumptions, the households can do no better than price-take at the limit of an infinitely large economy. Setup In detail, we continue with the economic model on the households and producers, but we consider a different method to design production and distribution of commodities than the market economy. It may be interpreted as a model of a "socialist" economy. There is no money, market, or private ownership of producers. Since we have abolished private ownership, money, and the profit motive, there is no point in distinguishing one producer from the next. Consequently, instead of each producer planning individually , it is as if the whole society has one great producer producing . Households still have the same preferences and endowments, but they no longer have budgets. Producers do not produce to maximize profit, since there is no profit. All households come together to make a state —a production and consumption plan for the whole economy—with the following constraints: Any nonempty subset of households may eliminate all other households, while retaining control of the producers. This economy is thus a cooperative game with each household being a player, and we have the following concepts from cooperative game theory: A blocking coalition is a nonempty subset of households, such that there exists a strictly Pareto-better plan even if they eliminate all other households. A state is a core state iff there are no blocking coalitions. The core of an economy is the set of core states. Since we assumed that any nonempty subset of households may eliminate all other households, while retaining control of the producers, the only states that can be executed are the core states. A state that is not a core state would immediately be objected by a coalition of households. We need one more assumption on , that it is a cone, that is, for any . This assumption rules out two ways for the economy to become trivial. The curse of free lunch: In this model, the whole is available to any