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Mechanism Design with Moderate Evidence Cost

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Author Info
Jesse Bull (Florida International University)

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Abstract

This paper addresses how a moderate evidence disclosure cost can be incorporated into mechanism-design analysis. The paper shows that in public-action settings with transferable utility one can restrict attention to a class of three-stage dynamic mechanisms. Under complete information with two or more players, a version of this type of mechanism can be used to eliminate evidence production in equilibrium. The paper also provides conditions on the evidence environment under which the class of mechanisms studied in Bull and Watson (2004) is equivalent to those considered here.

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File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1446&context=bejte
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Publisher Info
Article provided by Berkeley Electronic Press in its journal The B.E. Journal of Theoretical Economics.

Volume (Year): 8 (2008)
Issue (Month): 1 ()
Pages:
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Handle: RePEc:bpj:bejtec:v:8:y:2008:i:1:n:15

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Web page: http://www.bepress.com/bejte

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Related research
Keywords: evidence cost; mechanism design;

Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)

Cited by:
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  1. Jesse Bull, 2006. "Costly Evidence Production and the Limits of Verifiability," Working Papers 0611, Florida International University, Department of Economics. [Downloadable!]
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This page was last updated on 2009-12-24.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.