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Mechanism design with multidimensional, continuous types and interdependent valuations

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  • Miller, Nolan H.
  • Pratt, John W.
  • Zeckhauser, Richard J.
  • Johnson, Scott

Abstract

We consider the mechanism design problem when agents' types are multidimensional and continuous, and their valuations are interdependent. If there are at least three agents whose types satisfy a weak correlation condition, then for any decision rule there exist balanced transfers that render truthful revelation a Bayesian ?-equilibrium. A slightly stronger correlation condition ensures balanced transfers exist that induce a Bayesian Nash equilibrium in which agents' strategies are nearly truthful. This paper extends the analysis of KSG RWP03-020.
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  • Miller, Nolan H. & Pratt, John W. & Zeckhauser, Richard J. & Johnson, Scott, 2007. "Mechanism design with multidimensional, continuous types and interdependent valuations," Journal of Economic Theory, Elsevier, vol. 136(1), pages 476-496, September.
  • Handle: RePEc:eee:jetheo:v:136:y:2007:i:1:p:476-496
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    Cited by:

    1. Postlewaite, Andrew & McLean, Richard, 2015. "Implementation with interdependent valuations," Theoretical Economics, Econometric Society, vol. 10(3), September.
    2. repec:the:publsh:2234 is not listed on IDEAS
    3. Papakonstantinou, A. & Bogetoft, P., 2013. "Crowd-sourcing with uncertain quality - an auction approach," MPRA Paper 46055, University Library of Munich, Germany.
    4. Papakonstantinou, Athanasios & Bogetoft, Peter, 2017. "Multi-dimensional procurement auction under uncertain and asymmetric information," European Journal of Operational Research, Elsevier, vol. 258(3), pages 1171-1180.
    5. Gizatulina, Alia & Hellwig, Martin, 2010. "Informational smallness and the scope for limiting information rents," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2260-2281, November.

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    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

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