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A folk theorem for competing mechanisms

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  • Peters, Michael
  • Troncoso-Valverde, Cristián

Abstract

We provide a partial characterization of the set of outcome functions that can be supported as perfect Bayesian equilibrium in the recommendation game described in [T. Yamashita, Mechanism games with multiple principals and three or more agents, Econometrica 78 (2) (2010) 791–801]. We show that the set of outcome functions that can be supported is at least as large as the set supportable by a mechanism designer in the sense of Myerson (Myerson, 1979 [13]). We show how to support random and correlated outcomes as equilibrium outcomes in the recommendation game.

Suggested Citation

  • Peters, Michael & Troncoso-Valverde, Cristián, 2013. "A folk theorem for competing mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 953-973.
    • Handle: RePEc:eee:jetheo:v:148:y:2013:i:3:p:953-973
    DOI: 10.1016/j.jet.2013.01.001
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    References listed on IDEAS

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    1. , & ,, 2012. "Mechanism design and communication networks," Theoretical Economics, Econometric Society, vol. 7(3), September.
    2. Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January.
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    11. Takuro Yamashita, 2010. "Mechanism Games With Multiple Principals and Three or More Agents," Econometrica, Econometric Society, vol. 78(2), pages 791-801, March.
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    More about this item

    Keywords

    Competing mechanisms; Collusion; Implementable;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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