Individual Rationality Under Sequential Decentralized Participation Processes
Abstract
We consider the implementation of an economic outcome undercomplete information when the principal cannot commit to a simultaneousparticipation game. From a general class of sequential decentralizedparticipation processes and without common knowledge onthe details of the process, we introduce the concept of implementationunder robust sequential individual rationality. We solve the optimaldesign program: the principal may fail to extract fully agents' surplusrelative to the harsher threats but economic eciency is not damaged.Download Info
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Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2007-28.Length: 24
Date of creation: 2007
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Handle: RePEc:crs:wpaper:2007-28
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