For my game theory class I have to determine the core of the following cooperative game:
$\mathrm{N}={1,2,3}$
$S=\{1\}$ gives $v(S)=2$
$S=\{2\}$ gives $v(S)=5$
$S=\{3\}$ gives $v(S)=4$
$S=\{1,2\}$ gives $v(S)=14$
$S=\{1,3\}$ gives $v(S)=18$
$S=\{2,3\}$ gives $v(S)=9$
$S=\{1,2,3\}$ gives $v(S)=24$
I don't know what I should do to find the core properly. I also have to draw it in a triangle.
What I found up until now is the following:
$$C=\{ (x_1,x_2,x_3) \in \mathbb{R}^3 | x_1 \geq 2,x_2 \geq 5, x_3 \geq 4, x_1+x_2 \geq 14,\\ x_1+x_3 \geq 18, x_2 + x_3 \geq 9, x_1+x_2+x_3=24 \}$$
The core of the permutation game is given by the convex combination of the four extreme points:
Since, it is a homework, check out by yourself that the result is correct! Moreover, you will find out that the Shapley value is located outside of the core. Why?