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Mechanism design with two alternatives in Quasi-linear environment

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  • Thierry Marchant

    ()
    (Ghent University)

  • Debasis Mishra

    ()
    (Indian Statistical Institute, New Delhi)

Abstract

We study mechanism design in quasi-linear environments when there are two alternatives. We show that under a mild range condition, every implementable deterministic allocation rule is a generalized utility function maximizer. In unbounded domains, if we replace our range condition by an independence condition, then every implementable deterministic allocation rule is an affine maximizer. Our results extend Roberts' affine maximizer theorem (Roberts, 1979) to the case of two alternatives.

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File URL: http://www.isid.ac.in/~pu/dispapers/dp12-05.pdf
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Bibliographic Info

Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 12-05.

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Length: 32 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:ind:isipdp:12-05

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Related research

Keywords: Roberts theorem; dominant strategy mechanism design; affine maximizer; generalized utility function maximizer;

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References

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  1. Sushil Bikhchandani & Shurojit Chatterji & Ron Lavi & Ahuva Mu'alem & Noam Nisan & Arunava Sen, 2006. "Weak Monotonicity Characterizes Deterministic Dominant-Strategy Implementation," Econometrica, Econometric Society, vol. 74(4), pages 1109-1132, 07.
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Cited by:
  1. Debasis Mishra & Abdul Quadir, 2012. "Deterministic single object auctions with private values," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 12-06, Indian Statistical Institute, New Delhi, India.

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