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Detail-free mechanism design in twice iterative dominance: Large economies

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  • Matsushima, Hitoshi

Abstract

This paper investigates unique implementation in large economies with incomplete information and interdependent values; we degenerate the common knowledge assumptions and assume that a central planner is unaware of the specifications of an environment. With a minor restriction on the class of environments, we demonstrate that there exists a detail-free mechanism that virtually implements competitive allocations with complete information in twice iterative dominance, irrespective of how the environment is specified.

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  • Matsushima, Hitoshi, 2008. "Detail-free mechanism design in twice iterative dominance: Large economies," Journal of Economic Theory, Elsevier, vol. 141(1), pages 134-151, July.
    • Handle: RePEc:eee:jetheo:v:141:y:2008:i:1:p:134-151
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    2. Fudenberg, Drew & Mobius, Markus & Szeidl, Adam, 2007. "Existence of equilibrium in large double auctions," Journal of Economic Theory, Elsevier, vol. 133(1), pages 550-567, March.
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    Cited by:

    1. Kartik, Navin & Tercieux, Olivier & Holden, Richard, 2014. "Simple mechanisms and preferences for honesty," Games and Economic Behavior, Elsevier, vol. 83(C), pages 284-290.
    2. Jon X. Eguia & Dimitrios Xefteris, 2021. "Implementation by Vote-Buying Mechanisms," American Economic Review, American Economic Association, vol. 111(9), pages 2811-2828, September.
    3. Crawford, Vincent P., 2021. "Efficient mechanisms for level-k bilateral trading," Games and Economic Behavior, Elsevier, vol. 127(C), pages 80-101.
    4. Kneeland, Terri, 2022. "Mechanism design with level-k types: Theory and an application to bilateral trade," Journal of Economic Theory, Elsevier, vol. 201(C).
    5. Kojima, Fuhito & Yamashita, Takuro, 2017. "Double auction with interdependent values: incentives and efficiency," Theoretical Economics, Econometric Society, vol. 12(3), September.
    6. Hitoshi Matsushima, 2010. "Auctioneer's Discretion in Combinatorial Auctions," CARF F-Series CARF-F-293, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo, revised Sep 2012.
    7. Hashimoto, Tadashi, 2018. "The generalized random priority mechanism with budgets," Journal of Economic Theory, Elsevier, vol. 177(C), pages 708-733.

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