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 nonempty. However, we exhibit a well-behaved exchange economy in which this core is empty, even if...

In a framework of preferences over lotteries, the authors show that an axiom system consisting of weakened versions of Arrow's axioms has a unique solution, 'relative utilitarianism.' This consists of first normalizing individual von Neumann-Morgenstern utilities between zero and one and then...