The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Sep, 2002, Volume 70, Issue 5
https://doi.org/10.1111/1468-0262.00356
p. 1865-1892
Françoise Forges, Jean–François Mertens, Rajiv Vohra
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 goods are allocated through random mechanisms.
December 4, 2024
