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Mechanism design and communication networks

Author

Listed:
  • Tristan Tomala

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Ludovic Renou

    (Department of Economics - University of Leicester)

Abstract

This paper characterizes the communication networks for which, in any environment (utilities and beliefs), every incentive compatible social choice function is (partially) implementable. In environments with either common independent beliefs and private values or a bad outcome, we show that any incentive-compatible social choice function is implementable on a given communication network if and only if the network is weakly 2-connected. A network is weakly 2-connected if each player is either directly connected to the designer or indirectly connected to the designer through one of the disjoint path emanating from another player with two disjoint paths to the designer. We couple encryption techniques together with appropriate incentives to secure the transmission of each player's private information to the designer.

Suggested Citation

  • Tristan Tomala & Ludovic Renou, 2010. "Mechanism design and communication networks," Working Papers hal-00540799, HAL.
    • Handle: RePEc:hal:wpaper:hal-00540799
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    Citations

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    Cited by:

    1. is not listed on IDEAS
    2. Marie Laclau & Ludovic Renou & Xavier Venel, 2020. "Robust communication on networks," Papers 2007.00457, arXiv.org, revised Oct 2020.
    3. Rivera, Thomas J., 2018. "Incentives and the structure of communication," Journal of Economic Theory, Elsevier, vol. 175(C), pages 201-247.
    4. Renault, Jérôme & Renou, Ludovic & Tomala, Tristan, 2014. "Secure message transmission on directed networks," Games and Economic Behavior, Elsevier, vol. 85(C), pages 1-18.
    5. Laclau, Marie & Renou, Ludovic & Venel, Xavier, 2024. "Communication on networks and strong reliability," Journal of Economic Theory, Elsevier, vol. 217(C).
    6. Mohamed Belhaj & Sebastian Bervoets & Frédéric Deroïan, 2013. "Network Design under Local Complementarities," Working Papers halshs-00796487, HAL.
    7. Daniil Larionov & Hien Pham & Takuro Yamashita & Shuguang Zhu, 2025. "First Best Implementation With Costly Information Acquisition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 34(4), pages 889-898, November.
    8. Jan-Peter Siedlarek, 2023. "Making friends meet: network formation with introductions," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(4), pages 1037-1076, December.
    9. Rene Saran & Norovsambuu Tumennasan, 2015. "Implementation by Sortition in Nonexclusive Information Economies," Economics Working Papers 2015-13, Department of Economics and Business Economics, Aarhus University.
    10. Zhu, Shuguang, 2023. "Private disclosure with multiple agents," Journal of Economic Theory, Elsevier, vol. 212(C).
    11. Marie Laclau & Ludovic Renou & Xavier Venel, 2024. "Communication on networks and strong reliability," Post-Print hal-04836057, HAL.
    12. Peters, Michael & Troncoso-Valverde, Cristián, 2013. "A folk theorem for competing mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 953-973.
    13. Pinghan Liang, 2010. "Transfer of Authority within Hierarchy," Levine's Working Paper Archive 661465000000000139, David K. Levine.

    More about this item

    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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