Imperfect Commitment and the Revelation Principle: the Multi-Agent Case with Transferable Utility
AbstractBester and Strausz (2000) showed that the revelation principle of Bester and Strausz (2001) does not apply in a setting of many agents and no commitment. In their counterexample only one agent has private information. We show that if the parties can make ex ante transfers the revelation principle does extend to this setting. However, we show that it does not extend to a setting in which more than one agent has private information.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0731.
Date of creation: May 2007
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Web page: http://www.econ.cam.ac.uk/index.htm
Revelation Principle; Commitment; Asymmetric Information;
Other versions of this item:
- Evans, Robert & Reiche, Sönje, 2008. "Imperfect commitment and the revelation principle: The multi-agent case with transferable utility," Economics Letters, Elsevier, vol. 99(3), pages 611-614, June.
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-11 (All new papers)
- NEP-BEC-2007-06-11 (Business Economics)
- NEP-UPT-2007-06-11 (Utility Models & Prospect Theory)
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