The Relevance of Private Information in Mechanism Design
AbstractA number of recent results in mechanism design literature show that in virutally all mechanism design environments of interest, as long as agents' private information is correlated. It is possible to design mechanisms that leave agents with arbitrarily small information rents. Thus, while agents may possess exclusive private information, it is irrelevant for the purpose of normative economic analysis, since it is still always possible to implement any outcome as if the agent's private information was commonly known. This paper presents a critique of these results.
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Bibliographic InfoPaper provided by Boston University - Industry Studies Programme in its series Papers with number 0093.
Date of creation: Sep 1998
Date of revision:
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Postal: Boston University, Industry Studies Program; Department of Economics, 270 Bay Road, Boston, Massachusetts 02215.
Web page: http://www.bu.edu/econ/isp/
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Other versions of this item:
- Neeman, Zvika, 2004. "The relevance of private information in mechanism design," Journal of Economic Theory, Elsevier, vol. 117(1), pages 55-77, July.
- Neeman, Z., 1998. "The Relevance of Private Infromation in Mechanism Design," Papers 93, Boston University - Department of Economics.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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