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We study a cost allocation problem under asymmetric information, and show that the ex ante incentive compatible core is non-empty. We also obtain a non-emptiness result for the incentive compatible coarse core, which is one concept of an interim core.
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In this paper we show that in quasilinear economies the incentive compatible coarse core is non-empty if agents are informationally small in the sense of McLean and Postlewaite (2002) and the strict core in each state is non-empty.
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