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Egalitarian equivalence under asymmetric information

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Author Info

  • de Clippel, Geoffroy
  • Pérez-Castrillo, David
  • Wettstein, David

Abstract

We propose a definition of egalitarian equivalence that extends Pazner and Schmeidlerʼs (1978) concept to environments with incomplete information. If every feasible allocation rule can be implemented by an incentive compatible mechanism (as, for instance, in the case of non-exclusive information), then interim egalitarian equivalence and interim incentive efficiency remain compatible, as they were under complete information. When incentive constraints are more restrictive, on the other hand, the two criteria may become incompatible.

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Bibliographic Info

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

Volume (Year): 75 (2012)
Issue (Month): 1 ()
Pages: 413-423

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Handle: RePEc:eee:gamebe:v:75:y:2012:i:1:p:413-423

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

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Keywords: Pareto efficiency; Egalitarian equivalence; Asymmetric information;

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References

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Cited by:
  1. Yuan Ju, 2013. "Efficiency and compromise: a bid-offer–counteroffer mechanism with two players," International Journal of Game Theory, Springer, vol. 42(2), pages 501-520, May.
  2. Geoffroy de Clippel, 2010. "Copmment on Egalitarianism under Incomplete Information," Working Papers 2010-4, Brown University, Department of Economics.

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