Mechanism Design with Weaker Incentive Compatibility Constraints
AbstractWe study an adverse selection problem, where an agent is able to understate his productivity, but not allowed to overstate it. The solution to this problem is generally different than the solution to the standard problem, where no restriction is made on the statements of the agent. We identify a sufficient condition, that does not depend on the distribution of types, under which these two solutions coincide.
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Bibliographic InfoPaper provided by Microeconomics.ca Website in its series Micro Theory Working Papers with number celik-04-09-13-05-50-40.
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Date of creation: 13 Sep 2004
Date of revision: 06 Aug 2008
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Mechanism Design; Incentive Compatibility;
Other versions of this item:
- Celik, Gorkem, 2006. "Mechanism design with weaker incentive compatibility constraints," Games and Economic Behavior, Elsevier, vol. 56(1), pages 37-44, July.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-09-30 (All new papers)
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