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

We study endogenous coalition formation in contexts where individual (and group) payoffs depend on the entire coalition structure that might form. We capture potential interaction across coalitions by means of a partition function.