Linking Decisions with Moments
AbstractThis paper proposes a mechanism that can be operated without money in situations where agents have to decide over some common projects when they are not informed about others' preferences. The success of the mechanisms proposed in the literature to deal with similar problems usually relies on the assumption that the entire probability distribution that describes uncertainty is common knowledge. This modified linking mechanism requires the knowledge of solely two moment conditions. It proves to be a useful tool for achieving efficiency improvements in public decision problems. Jackson and Sonnenschein  offer the study of the so-called linking mechanism. Here I show that, while allowing for heterogeneity among problems and agents, the linking mechanism keeps its asymptotic properties when run with solely two moment conditions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by School of Economics and Business Administration, University of Navarra in its series Faculty Working Papers with number 10/05.
Length: 21 pages pages
Date of creation: Aug 2005
Date of revision:
Contact details of provider:
Web page: http://www.unav.es/facultad/econom
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-09-11 (All new papers)
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.:
- Casella, Alessandra, 2002.
CEPR Discussion Papers
3508, C.E.P.R. Discussion Papers.
- Preston McAfee, R., 1992. "Amicable divorce: Dissolving a partnership with simple mechanisms," Journal of Economic Theory, Elsevier, vol. 56(2), pages 266-293, April.
- Róbert Veszteg, 2010.
"Multibidding game under uncertainty,"
Review of Economic Design,
Springer, vol. 14(3), pages 311-329, September.
- Pintér, Ágnes & Veszteg, Róbert F., 2010.
"Minority vs. majority: An experimental study of standardized bids,"
European Journal of Political Economy,
Elsevier, vol. 26(1), pages 36-50, March.
- Agnes Pinter & Robert F. Veszteg, 2008. "Minority vs. Majority: An Experimental Study of Standardized Bids," ISER Discussion Paper 0708, Institute of Social and Economic Research, Osaka University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.