The relevance of private information in mechanism design
AbstractA number of recent results in mechanism design literature show that in virutally all mechanism design environments of interest, as long as agents' private information is correlated. It is possible to design mechanisms that leave agents with arbitrarily small information rents. Thus, while agents may possess exclusive private information, it is irrelevant for the purpose of normative economic analysis, since it is still always possible to implement any outcome as if the agent's private information was commonly known. This paper presents a critique of these results.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 117 (2004)
Issue (Month): 1 (July)
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Web page: http://www.elsevier.com/locate/inca/622869
Other versions of this item:
- Neeman, Z., 1998. "The Relevance of Private Infromation in Mechanism Design," Papers 93, Boston University - Department of Economics.
- Zvika Neeman, 1998. "The Relevance of Private Information in Mechanism Design," Papers 0093, Boston University - Industry Studies Programme.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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