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Full-Text Articles in Social and Behavioral Sciences
Efficient Dynamic Mechanisms With Interdependent Valuations, Wei He, Jiangtao Li
Efficient Dynamic Mechanisms With Interdependent Valuations, Wei He, Jiangtao Li
Research Collection School Of Economics
This paper considers a dynamic environment with interdependent valuations and evolving private information. Under the assumption of “independent types”, we construct an efficient, incentive-compatible mechanism that is also budget-balanced in every period of the game. Our mechanism works in environments where in each period, each agent observes her own realized outcome-decision payoff from the previous period. This extends the insight of Mezzetti (2004) to the dynamic setting.
Implementation With Transfers, Yi-Chun Chen, Takashi Kunimoto, Yifei Sun
Implementation With Transfers, Yi-Chun Chen, Takashi Kunimoto, Yifei Sun
Research Collection School Of Economics
We say that a social choice rule is implementable with (small) transfers if one candesign a mechanism whose set of equilibrium outcomes coincides with that speciÖed bythe rule but the mechanism allows for (small) ex post transfers among the players. Weshow in private-value environments that any incentive compatible rule is implementablewith small transfers. We obtain this permissive implementation result by proposinga natural extension of Abreu and Matsushima (1994) to incomplete information environments.Furthermore, in order to showcase the applicability of our results, we relatethem to the recent developments in implementation theory. Next we revisit the conjectureby Abreu and Matsushima (1994), who …