Ex Post Efficiency and Individual Rationality in Incentive Compatible Trading Mechanisms
AbstractThis paper concerns the design of a trading mechanism for a group of traders when their valuations of the good are private information and they bargain over who shall consume more than his initial endowment and who shall consume less. It is shown that there generally exists a set of initial endowments of the traded commodity such that it is possible to design a trading mechanism which is incentive compatible, individually rational and ex post efficient.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 202.
Length: 21 pages
Date of creation: Dec 1988
Date of revision:
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Efficient trading; mechanism design.;
Find related papers by JEL classification:
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
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.:
- Myerson, Roger B, 1979.
"Incentive Compatibility and the Bargaining Problem,"
Econometric Society, vol. 47(1), pages 61-73, January.
- Roger B. Myerson, 1977. "Incentive Compatability and the Bargaining Problem," Discussion Papers 284, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Myerson, Roger B. & Satterthwaite, Mark A., 1983.
"Efficient mechanisms for bilateral trading,"
Journal of Economic Theory,
Elsevier, vol. 29(2), pages 265-281, April.
- Chatterjee, Kalyan, 1982. "Incentive Compatibility in Bargaining under Uncertainty," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 717-26, November.
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