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A Note on Budget Balance under Interim Participation Constraints: The Case of Independet Types

Author

Listed:
  • Tilman Börgers

    (Department of Economics, University College London)

  • Peter Norman

    (Department of Economics,University of British Columbia, Vancouver)

Abstract

We provide a simple proof of the equivalence between ex ante and ex post budget balance constraints in Bayesian mechanism design with independent types when participation decisions are made at the interim stage. The result is given an interpretation in terms of efficient allocation of risk.

Suggested Citation

  • Tilman Börgers & Peter Norman, 2005. "A Note on Budget Balance under Interim Participation Constraints: The Case of Independet Types," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2005_14, Max Planck Institute for Behavioral Economics.
    • Handle: RePEc:mpg:wpaper:2005_14
    as

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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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