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Mechanism Design with Multidimensional, Continuous Types and Interdependent Valuations


  • Miller, Nolan

    (Harvard U)

  • Pratt, John H.

    (Harvard U)

  • Zeckhauser, Richard

    (Harvard U)

  • Johnson, Scott

    (Australian National U)


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.

Suggested Citation

  • Miller, Nolan & Pratt, John H. & Zeckhauser, Richard & Johnson, Scott, 2006. "Mechanism Design with Multidimensional, Continuous Types and Interdependent Valuations," Working Paper Series rwp06-028, Harvard University, John F. Kennedy School of Government.
  • Handle: RePEc:ecl:harjfk:rwp06-028

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    References listed on IDEAS

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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. 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.
    3. 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.
    4. repec:the:publsh:2234 is not listed on IDEAS
    5. Papakonstantinou, A. & Bogetoft, P., 2013. "Crowd-sourcing with uncertain quality - an auction approach," MPRA Paper 46055, University Library of Munich, Germany.

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    JEL classification:

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


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