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Restricted Environments and Incentive Compatibility in Interdependent Values Models

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  • Salvador Barberà
  • Dolors Berga
  • Bernardo Moreno

Abstract

We study the possibility of designing satisfactory ex post incentive compatible single valued direct mechanisms in interdependent values environments, characterized by the set of agents' type profiles and by their induced preference profiles. For environments that we call knit and strict, only constant mechanisms can be ex post (or interim) incentive compatible. For those called partially knit, ex post incentive compatibility extends to groups, and strategy- proofness implies strong group strategy-proofness in private values environments. The results extend to mechanisms operating on non-strict domains under an additional requirement of respectfulness. We discuss voting, assignment and auctions environments where our theorems apply.

Suggested Citation

  • Salvador Barberà & Dolors Berga & Bernardo Moreno, 2018. "Restricted Environments and Incentive Compatibility in Interdependent Values Models," Working Papers 1024, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:1024
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    More about this item

    Keywords

    mechanisms; ex post incentive compatibility; ex post group incentive compatibility; strategy-proofness; strong group strategy-proofness; knit environments; respectfulness;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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