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Optimal collusion-resistant mechanisms with verification

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  • Penna, Paolo
  • Ventre, Carmine

Abstract

We present the first general positive result on the construction of collusion-resistant mechanisms, that is, mechanisms that guarantee dominant strategies even when agents can form arbitrary coalitions and exchange compensations (sometimes referred to as transferable utilities or side payments). This is a much stronger solution concept as compared to truthful or even group strategyproof mechanisms, and only impossibility results were known for this type of mechanisms in the “classical” model.

Suggested Citation

  • Penna, Paolo & Ventre, Carmine, 2014. "Optimal collusion-resistant mechanisms with verification," Games and Economic Behavior, Elsevier, vol. 86(C), pages 491-509.
    • Handle: RePEc:eee:gamebe:v:86:y:2014:i:c:p:491-509
    DOI: 10.1016/j.geb.2012.09.002
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    References listed on IDEAS

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    More about this item

    Keywords

    Game theory; Algorithmic mechanism design; Transferable utilities;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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