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Informed-Principal Problem in Mechanisms with Limited Commitment

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  • Suehyun Kwon

Abstract

This paper studies mechanism design with limited commitment where agents have correlated persistent types over the infinite horizon. The mechanism designer now faces the informed-principal problem in addition to usual issues with i.i.d. types. The paper first shows revelation principle in this context then shows sufficient conditions for obtaining full-commitment solutions with limited commitment.

Suggested Citation

  • Suehyun Kwon, 2019. "Informed-Principal Problem in Mechanisms with Limited Commitment," CESifo Working Paper Series 7513, CESifo.
    • Handle: RePEc:ces:ceswps:_7513
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    References listed on IDEAS

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    Cited by:

    1. Suehyun Kwon, 2019. "Revelation Principle with Persistent Correlated Types: Impossibility Result," CESifo Working Paper Series 7782, CESifo.

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    More about this item

    Keywords

    mechanism design; limited commitment; revelation principle; informed-principal problem; persistence; correlated types;
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