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Mediated Contracts and Mechanism Design

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  • Strausz, Roland

Abstract

This note relates the mechanisms that are based on mediated contracts of Rahman and Obara (2010) to the mechanisms of Myerson (1982). It shows that the mechanisms in Myerson (1982) are more general in that they encompass the mechanisms based on mediated contracts. It establishes an equivalence between the two classes if mediated contracts are allowed to be stochastic.

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Bibliographic Info

Paper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 322.

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Date of creation: May 2010
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Handle: RePEc:trf:wpaper:322

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Keywords: mediatedcontract; mechanismdesign; revelationprinciple; moralhazard;

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