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Information in Mechanism Design

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Abstract

We survey the recent literature on the role of information in mechanism design. First, we discuss an emerging literature on the role of endogenous payoff and strategic information for the design and the efficiency of the mechanism. We specifically consider information management in the form of acquisition of new information or disclosure of existing information. Second, we argue that in the presence of endogenous information, the robustness of the mechanism to the type space and higher order beliefs becomes a natural desideratum. We discuss recent approaches to robust mechanism design and robust implementation.

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File URL: http://cowles.econ.yale.edu/P/cd/d15a/d1532-r.pdf
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Bibliographic Info

Paper provided by Cowles Foundation for Research in Economics, Yale University in its series Cowles Foundation Discussion Papers with number 1532R.

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Length: 42 pages
Date of creation: Aug 2005
Date of revision: Jan 2006
Publication status: Published in Blundell, Newey and Persson, eds., Proceedings of the 9th World Congress of the Econometric Society, Cambridge University Press, 2006, pp. 186-221
Handle: RePEc:cwl:cwldpp:1532r

Note: CFP 1208
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Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA

Related research

Keywords: Mechanism Design; Information Acquisition; Ex Post Equilibrium; Robust Mechanism Design; Interdependent Values; Information Management;

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