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Hard Evidence and Mechanism Design

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Author Info
Jesse Bull
Joel Watson

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Abstract

In this short paper, we show how hard evidence can be incorporated into the mechanism-design framework. We model the parties' inalienable decisions (evidence production) as distinct from an arbitrarily-designed message form. A mechanism specifies the message form and how the public decision is a function of messages and evidence. Our work is thus along the lines of Myerson (1982, 1991), whose mechanism-design analysis nicely distinguishes between inalienable private and public decisions.

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Paper provided by Department of Economics, UC San Diego in its series University of California at San Diego, Economics Working Paper Series with number 2002-16.

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Date of creation: Sep 2002
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Handle: RePEc:cdl:ucsdec:2002-16

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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.:
  1. Myerson, Roger B., 1982. "Optimal coordination mechanisms in generalized principal-agent problems," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 67-81, June. [Downloadable!] (restricted)
  2. Bull, Jesse & Watson, Joel, 2004. "Evidence disclosure and verifiability," Journal of Economic Theory, Elsevier, vol. 118(1), pages 1-31, September. [Downloadable!] (restricted)
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  3. Eric Maskin & John Moore, 1999. "Implementation and Renegotiation," Harvard Institute of Economic Research Working Papers 1863, Harvard - Institute of Economic Research.
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  4. Shin Hyun Song, 1994. "The Burden of Proof in a Game of Persuasion," Journal of Economic Theory, Elsevier, vol. 64(1), pages 253-264, October. [Downloadable!] (restricted)
  5. Jesse Bull, 2006. "Costly Evidence Production and the Limits of Verifiability," Working Papers 0611, Florida International University, Department of Economics. [Downloadable!]
  6. Jim Brennan & Joel Watson, 2002. "The Renegotiation-Proofness Principle and Costly Renegotiation," University of California at San Diego, Economics Working Paper Series 2002-10, Department of Economics, UC San Diego. [Downloadable!]
  7. Dasgupta, Partha S & Hammond, Peter J & Maskin, Eric S, 1979. "The Implementation of Social Choice Rules: Some General Results on Incentive Compatibility," Review of Economic Studies, Blackwell Publishing, vol. 46(2), pages 185-216, April. [Downloadable!] (restricted)
  8. Lipman Barton L. & Seppi Duane J., 1995. "Robust Inference in Communication Games with Partial Provability," Journal of Economic Theory, Elsevier, vol. 66(2), pages 370-405, August. [Downloadable!] (restricted)
  9. repec:att:wimass:1920123 is not listed on IDEAS
  10. Mookherjee, Dilip & Reichelstein, Stefan, 1990. "Implementation via Augmented Revelation Mechanisms," Review of Economic Studies, Blackwell Publishing, vol. 57(3), pages 453-75, July. [Downloadable!] (restricted)
  11. Jesse Bull, 2006. "Costly Evidence and Systems of Fact Finding," Working Papers 0612, Florida International University, Department of Economics. [Downloadable!]
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  12. Okuno-Fujiwara, Masahiro & Postlewaite, Andrew & Suzumura, Kotaro, 1990. "Strategic Information Revelation," Review of Economic Studies, Blackwell Publishing, vol. 57(1), pages 25-47, January. [Downloadable!] (restricted)
  13. Paul Milgrom & John Roberts, 1986. "Relying on the Information of Interested Parties," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 18-32, Spring. [Downloadable!] (restricted)
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  14. Hart, Oliver D & Moore, John, 1988. "Incomplete Contracts and Renegotiation," Econometrica, Econometric Society, vol. 56(4), pages 755-85, July. [Downloadable!] (restricted)
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  15. Daniel J. Seidmann & Eyal Winter, 1997. "Strategic Information Transmission with Verifiable Messages," Econometrica, Econometric Society, vol. 65(1), pages 163-170, January.
  16. Green, Jerry R & Laffont, Jean-Jacques, 1986. "Partially Verifiable Information and Mechanism Design," Review of Economic Studies, Blackwell Publishing, vol. 53(3), pages 447-56, July. [Downloadable!] (restricted)
  17. F. Forges & Frederic Koessler, 2003. "Communication Equilibria with Partially Verifiable Types," THEMA Working Papers 2003-10, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
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  18. Jacob Glazer & Ariel Rubinstein, 2004. "On Optimal Rules of Persuasion," Econometrica, Econometric Society, vol. 72(6), pages 1715-1736, November. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Jesse Bull, 2006. "Costly Evidence Production and the Limits of Verifiability," Working Papers 0611, Florida International University, Department of Economics. [Downloadable!]
  2. Caillaud, Bernard & Tirole, Jean, 2007. "Consensus Building: How to Persuade a Group," IDEI Working Papers 435, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
    Other versions:
  3. Jacob Glazer & Ariel Rubinstein, 2003. "A Model of Optimal Persuasion Rules," Levine's Bibliography 666156000000000012, UCLA Department of Economics. [Downloadable!]
  4. Bharat Anand & Ron Shachar, 2007. "(Noisy) communication," Quantitative Marketing and Economics, Springer, vol. 5(3), pages 211-237, September. [Downloadable!] (restricted)
  5. Joel Watson, 2006. "Contract and Game Theory: Basic Concepts for Settings with Finite Horizons," University of California at San Diego, Economics Working Paper Series 2006-01, Department of Economics, UC San Diego. [Downloadable!]
  6. Elchanan Ben-Porath & Barton L. Lipman, 2009. "Implementation and Partial Provability," Boston University - Department of Economics - Working Papers Series wp2009-002, Boston University - Department of Economics. [Downloadable!]
  7. Jacob Glazer & Ariel Rubinstein, 2005. "On the Pragmatics of Persuasion: A Game Theoretical Approach," Levine's Bibliography 784828000000000166, UCLA Department of Economics. [Downloadable!]
  8. Jesse Bull & Joel Watson, 2002. "Evidence Disclosure and Verfiability," University of California at San Diego, Economics Working Paper Series 2000-16R, Department of Economics, UC San Diego. [Downloadable!]
    Other versions:
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