INSTITUTE OF MATHEMATICAL ECONOMICS

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Mechanisms in the Core of a Fee Game


Joachim Rosenmüller

Working-Paper No. 303

November 1998


Abstract

A Fee Game is a cooperative game with incomplete information the ex post realizations of which show side payment character. The game appears in coalitional function form depending on the 'types' of the players which are randomly chosen and about which the players have private information.
We specify incentive compatible mechanisms and show that with a natural condition the core of the game is not empty: it contains constant mechanisms.


Keywords: Bargaining, Incomplete Information, Core, Side Payment Games

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