Implementation in multidimensional domains with ordinal restrictions
AbstractWe consider implementation of a deterministic allocation rule using transfers in quasi-linear private values environments. We show that if the type space is a multidimensional domain satisfying some ordinal restrictions, then an allocation rule is implementable in such a domain if and only if it satisfies a familiar and simple condition called 2-cycle monotonicity. Our ordinal restrictions cover type spaces which are non-convex, e.g., the single peaked domain and its generalizations. We apply our result to show that in the single peaked domain, a local version of 2-cycle monotonicity is necessary and sufficient for implementation and every locally incentive compatible mechanism is incentive compatible.
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Bibliographic InfoPaper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 13-07.
Length: 32 pages
Date of creation: May 2013
Date of revision:
implementation; 2-cycle monotonicity; revenue equivalence; local incentive compatibility;
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D47 - Microeconomics - - Market Structure and Pricing - - - Market Design
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-22 (All new papers)
- NEP-CTA-2013-11-22 (Contract Theory & Applications)
- NEP-GTH-2013-11-22 (Game Theory)
- NEP-MIC-2013-11-22 (Microeconomics)
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