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On the equivalence of Bayesian and dominant strategy implementation in a general class of social choice problems

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  • Jacob K. Goeree
  • Alexey Kushnir

Abstract

We consider a standard social choice environment with linear utilities and independent, one-dimensional, private values. We provide a short and constructive proof that for any Bayesian incentive compatible mechanism there exists an equivalent dominant strategy incentive compatible mechanism that delivers the same interim expected utilities for all agents. We demonstrate the usefulness and applicability of our approach with several examples. Finally, we show that the equivalence between Bayesian and dominant strategy implementation breaks down when utilities are non-linear or when values are interdependent, multi-dimensional, or correlated.

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Paper provided by Department of Economics - University of Zurich in its series ECON - Working Papers with number 021.

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Date of creation: Jul 2011
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Handle: RePEc:zur:econwp:021

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Cited by:
  1. Alex Gershkov & Jacob K. Goeree & Alexey Kushnir & Benny Moldovanu & Xianwen Shi, 2013. "On the Equivalence of Bayesian and Dominant Strategy Implementation," Econometrica, Econometric Society, vol. 81(1), pages 197-220, 01.
  2. Jacob K. Goeree & Alexey Kushnir, 2011. "A geometric approach to mechanism design," ECON - Working Papers 056, Department of Economics - University of Zurich, revised Jun 2013.

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