IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2509.24673.html
   My bibliography  Save this paper

Tight Samurai Accountant

Author

Listed:
  • Deniz Kattwinkel
  • Justus Preusser

Abstract

This note applies tightness (Kattwinkel and Preusser (2025)) to the setting of Border and Sobel (1987, "Samurai Accountant: A Theory of Auditing and Plunder"). Border and Sobel characterize efficient mechanisms and argue that efficiency entails no loss of optimality. We characterize tight mechanisms and argue that tightness entails no loss of optimality. We show that tight mechanisms form a subset of efficient mechanisms. Therefore, tightness refines efficiency without loss of optimality. By characterizing tight mechanisms, one can replicate the insights from Border and Sobel (1987) and Chander and Wilde (1998). A novel insight is how and in which order the principal uses different instruments to provide incentives to different agent types. Further, we describe a procedure for constructing efficient mechanisms in a setting with a continuum of types.

Suggested Citation

  • Deniz Kattwinkel & Justus Preusser, 2025. "Tight Samurai Accountant," Papers 2509.24673, arXiv.org, revised Sep 2025.
    • Handle: RePEc:arx:papers:2509.24673
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2509.24673
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2509.24673. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.