We consider a single commodity overlapping generations model where, at a cost, institutions can be created (or transformed) to carry out intergenerational transfers. We analyze the game with both strategic and cooperative methods, characterizing the "unique" stationary equilibrium, as well as the set of transfer institutions that belong to the core (which we show to coincide with the consistent core). We conclude that, as long as the creation of an institution is costly, it is possible to sustain positive transfers, though those will be below the optimal level. Moreover, the lower the costs, the more efficient the transfer will be. Journal of Economic Literature Classification Numbers: C71, C72, D23, E21, H55. © 1993 by Academic Press, Inc.