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Egalitarian equivalence under asymmetric information

  • de Clippel, Geoffroy
  • Pérez-Castrillo, David
  • Wettstein, David

We propose a definition of egalitarian equivalence that extends Pazner and Schmeidlerʼs (1978) concept to environments with incomplete information. If every feasible allocation rule can be implemented by an incentive compatible mechanism (as, for instance, in the case of non-exclusive information), then interim egalitarian equivalence and interim incentive efficiency remain compatible, as they were under complete information. When incentive constraints are more restrictive, on the other hand, the two criteria may become incompatible.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 75 (2012)
Issue (Month): 1 ()
Pages: 413-423

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Handle: RePEc:eee:gamebe:v:75:y:2012:i:1:p:413-423
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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