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Ratifiable Mechanisms: Learning from Disagreement

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Author Info
Peter Cramton () (Economics Department, University of Maryland)
Thomas R. Palfrey

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Abstract

In a mechanism design problem, participation constraints require that all types prefer the proposed mechanism to some status quo. If equilibrium play in the status quo mechanism depends on the players' beliefs, then the inference drawn if someone objects to the proposed mechanism may alter the participation constraints. We investigate this issue by modeling the mechanism design problem as a two-stage process, consisting of a ratification stage followed by the actual play of the chosen game. We develop and illustrate a new concept, ratifiability, that takes account of inferences from a veto in a consistent way.

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File URL: http://www.cramton.umd.edu/papers1995-1999/95geb-ratifiable-mechanisms.pdf
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Publisher Info
Paper provided by University of Maryland, Department of Economics - Peter Cramton in its series Papers of Peter Cramton with number 95geb.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 29 pages
Date of creation: 1995
Date of revision: 09 Jun 1998
Publication status: Published in Games and Economic Behavior, 10:2, August 1995, pages 255-283.
Handle: RePEc:pcc:pccumd:95geb

Contact details of provider:
Postal: Economics Department, University of Maryland, College Park, MD 20742-7211
Phone: (202) 318-0520
Fax: (202) 318-0520
Web page: http://www.cramton.umd.edu

For technical questions regarding this item, or to correct its listing, contact: (Peter Cramton).

Related research
Keywords: Sequential Games; Mechanism Design; Private Information;

Other versions of this item:

Find related papers by JEL classification:
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

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References listed on IDEAS
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.:
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  1. Martimort, David & Semenov, Aggey, 2008. "The Informational Effects of Competition and Collusion in Legislative Politics," MPRA Paper 6989, University Library of Munich, Germany. [Downloadable!]
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  2. Mark Fey & Kristopher Ramsay, 2009. "Mechanism design goes to war: peaceful outcomes with interdependent and correlated types," Review of Economic Design, Springer, vol. 13(3), pages 233-250, September. [Downloadable!] (restricted)
  3. Celik, Gorkem, 2004. "Mechanism Design with Collusive Supervision," Micro Theory Working Papers celik-04-09-13-05-42-19, Microeconomics.ca Website, revised 06 Aug 2008. [Downloadable!]
    Other versions:
  4. Roberto Serrano & Rajiv Vohra, 2005. "Information Transmission In Coalitional Voting Games," Economics Working Papers we055726, Universidad Carlos III, Departamento de Economía. [Downloadable!]
    Other versions:
  5. Doh Shin Jeon & Domenico Menicucci, 2001. "Optimal Second-degree Price Discrimination and Arbitrage: On the Role of Asymetric Information among Buyers," Economics Working Papers 624, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2005. [Downloadable!]
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  6. Joel Watson, 1999. "Starting Small and Commitment," University of California at San Diego, Economics Working Paper Series 1999-08, Department of Economics, UC San Diego. [Downloadable!]
  7. Faure-Grimaud, Antoine & Laffont, Jean-Jacques & Martimort, David, 2003. "Collusion, Delegation and Supervision with Soft Information," IDEI Working Papers 167, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
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  8. Pouyet, J. & Verouden, V., 2000. "Cartel formation under incomplete information : on the requirements of collusion-proofness," Discussion Paper 1, Tilburg University, Center for Economic Research. [Downloadable!]
  9. Dequiedt, V., 2006. "Ratification and veto constraints in mechanism design," Working Papers 200606, Grenoble Applied Economics Laboratory (GAEL). [Downloadable!]
  10. Joel Watson, 1999. "Starting Small and Commitment," Cowles Foundation Discussion Papers 1217, Cowles Foundation, Yale University. [Downloadable!]
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  11. Ledyard, John & Palfrey, Thomas, 2003. "A general characterization of interim efficient mechanisms for independent linear environments," Working Papers 1186, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  12. Ken Hendricks & Robert Porter & Guofu Tan, 2003. "Bidding Rings and the Winner's Curse: The Case of Federal Offshore Oil and Gas Lease Auctions," NBER Working Papers 9836, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Celik, Gorkem & Peters, Michael, 2008. "Equilibrium Rejection of a Mechanism," Micro Theory Working Papers gorkem_celik-2008-10, Microeconomics.ca Website, revised 06 Aug 2008. [Downloadable!]
  14. Dequiedt, V., 2006. "Efficient collusion in optimal auctions," Working Papers 200607, Grenoble Applied Economics Laboratory (GAEL). [Downloadable!]
    Other versions:
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