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...

We consider a repeated two-person zero-sum game in which the payoffs in the stage game are given by a 2 x 2 matrix. This is chosen (once) by chance, at the beginning of the game, to be either G1 or G2, with probabilities p and 1 - p respectively. The maximiser is informed of the actual payoff...