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Implementation in economies with non-convex production technologies unknown to the designer

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  • Tian, Guoqiang

Abstract

This paper deals with the problem of incentive mechanism design in non-convex production economies when production sets and preferences both are unknown to the designer. We consider Nash-implementation of loss-free, average cost, marginal cost, voluntary trading, and quantity-taking pricing equilibrium allocations in economies involving increasing returns to scale or more general types of non-convexities. The mechanisms presented in the paper are well-behaved. They are feasible, continuous, and use finite dimensional message spaces. Moreover, the mechanisms work not only for three or more agents, but also for two-agent economies.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 66 (2009)
Issue (Month): 1 (May)
Pages: 526-545

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Handle: RePEc:eee:gamebe:v:66:y:2009:i:1:p:526-545

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Web page: http://www.elsevier.com/locate/inca/622836

Related research

Keywords: Incentive mechanism design Implementation Various pricing equilibrium principles Increasing returns Well-behaved mechanism design;

References

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  14. Brown, Donald J., 1991. "Equilibrium analysis with non-convex technologies," Handbook of Mathematical Economics, in: W. Hildenbrand & H. Sonnenschein (ed.), Handbook of Mathematical Economics, edition 1, volume 4, chapter 36, pages 1963-1995 Elsevier.
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  17. Tian, Guoqiang, 2005. "Implementation in production economies with increasing returns," Mathematical Social Sciences, Elsevier, vol. 49(3), pages 309-325, May.
  18. Tian, Guoqiang, 1992. "Existence of equilibrium in abstract economies with discontinuous payoffs and non-compact choice spaces," Journal of Mathematical Economics, Elsevier, vol. 21(4), pages 379-388.
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