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Shifting supports in Esö and Szentes (2007)

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  • Liu, Bin
  • Liu, Dongri
  • Lu, Jingfeng

Abstract

The common-support assumption of future type distributions is well adopted in the dynamic mechanism design literature. This assumption can become restrictive when the support is bounded. In this paper, we extend Esö and Szentes (2007) by allowing shifting supports and formally show that both their analytical methodology and key insights are robust to this generalization.

Suggested Citation

  • Liu, Bin & Liu, Dongri & Lu, Jingfeng, 2020. "Shifting supports in Esö and Szentes (2007)," Economics Letters, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:ecolet:v:193:y:2020:i:c:s0165176520301737
    DOI: 10.1016/j.econlet.2020.109251
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    References listed on IDEAS

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    Cited by:

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    2. Meng, Dawen & Sun, Lei & Tian, Guoqiang, 2022. "Dynamic mechanism design on social networks," Games and Economic Behavior, Elsevier, vol. 131(C), pages 84-120.

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    More about this item

    Keywords

    Adverse selection; Dynamic mechanism design; Shifting supports;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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