The ex ante incentive compatible core in the absence of wealth effects

In a differential information economy with quasi-linear utilities, monetary transfers facilitate the fulfillment of incentive compatibility constraints: the associated ex ante core is generically non-empty. However, we exhibit a wellbehaved exchange economy in which this core is empty, even if goods are allocated through random mechanisms.

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Year of publication:	2001-01
Authors:	FORGES, Françoise ; MERTENS, Jean-François ; VOHRA, Rajiv
Institutions:	Center for Operations Research and Econometrics (CORE), École des Sciences Économiques de Louvain
Subject:	Core \| exchange economy \| asymmetric information \| incentive compatibility \| ex ante \| transferable utility \| absence of wealth effects \| quasi-linear

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Extent:	application/pdf
Series:	CORE Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE) Number 2001001
Classification:	C71 - Cooperative Games ; D82 - Asymmetric and Private Information ; D51 - Exchange and Production Economies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005043580