Informed principal problems in generalized private values environments
AbstractWe show that a solution to the problem of mechanism selection by an informed principal exists in a large class of environments with “generalized private values”: the agents’ payoﬀ functions are independent of the principal’s type. The solution is an extension of Maskin and Tirole’s (1990) strong unconstrained Pareto optimum. Our main condition for existence is that given any type proﬁle the best possible outcome for the principal is the worst possible outcome for all agents. This condition is satisﬁed in most market environments. We also give an example for non-existence.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Econometric Society in its journal Theoretical Economics.
Volume (Year): 7 (2012)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://econtheory.org
Informed principal; mechanism design; private values; strong unconstrained Pareto optimum;
Find related papers by JEL classification:
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Grossman, Sanford J. & Perry, Motty, 1986. "Perfect sequential equilibrium," Journal of Economic Theory, Elsevier, vol. 39(1), pages 97-119, June.
- Kosenok, Grigory & Severinov, Sergei, 2008. "Individually rational, budget-balanced mechanisms and allocation of surplus," Journal of Economic Theory, Elsevier, vol. 140(1), pages 126-161, May.
- Vasiliki Skreta, 2008.
"On the Informed Seller Problem: Optimal Information Disclosure,"
08-10, New York University, Leonard N. Stern School of Business, Department of Economics.
- Vasiliki Skreta, 2011. "On the informed seller problem: optimal information disclosure," Review of Economic Design, Springer, vol. 15(1), pages 1-36, March.
- Vasiliki Skreta, 2007. "On the Informed Seller Problem: Optimal Information Disclosure," Levine's Bibliography 122247000000001789, UCLA Department of Economics.
- Vasiliki Skreta, 2007. "On the Informed Seller Problem: Optimal Information Disclosure," Levine's Bibliography 843644000000000222, UCLA Department of Economics.
- Chade, Hector & Silvers, Randy, 2002.
"Informed principal, moral hazard, and the value of a more informative technology,"
Elsevier, vol. 74(3), pages 291-300, February.
- Hector Chade & Randolph Silvers, . "Informed Principal, Moral Hazard, and the Value of a More Informative Technology," Working Papers 2133302, Department of Economics, W. P. Carey School of Business, Arizona State University.
- DE CLIPPEL, Geoffroy & MINELLI, Enrico, .
"Two-person bargaining with verifiable information,"
CORE Discussion Papers RP
-1733, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Michela Cella, 2006.
"Informed Principal with Correlation,"
Economics Series Working Papers
261, University of Oxford, Department of Economics.
- Fleckinger, Pierre, 2007. "Informed principal and countervailing incentives," Economics Letters, Elsevier, vol. 94(2), pages 240-244, February.
- Yilankaya, Okan, 1999. "A Note on the Seller's Optimal Mechanism in Bilateral Trade with Two-Sided Incomplete Information," Journal of Economic Theory, Elsevier, vol. 87(1), pages 267-271, July.
- Mailath George J. & Okuno-Fujiwara Masahiro & Postlewaite Andrew, 1993. "Belief-Based Refinements in Signalling Games," Journal of Economic Theory, Elsevier, vol. 60(2), pages 241-276, August.
- Guesnerie, Roger & Laffont, Jean-Jacques, 1984. "A complete solution to a class of principal-agent problems with an application to the control of a self-managed firm," Journal of Public Economics, Elsevier, vol. 25(3), pages 329-369, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martin J. Osborne).
If references are entirely missing, you can add them using this form.