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On Competing Mechanisms under Exclusive Competition

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  • Attar, Andrea
  • Campioni, Eloisa
  • Piaser, Gwenaël

Abstract

We study games in which several principals design incentive schemes in the presence of privately informed agents. Competition is exclusive: each agent can participate with at most one principal, and principal-agents corporations are isolated. We analyze the role of standard incentive compatible mechanisms in these contexts. First, we provide a clarifying example showing how incentive compatible mechanisms fail to completely characterize equilibrium outcomes even if we restrict to pure strategy equilibria. Second, we show that truth-telling equilibria are robust against unilateral deviations toward arbitrary mechanisms. We then consider the single agent case and exhibit sufficient conditions for the validity of the revelation principle.

Suggested Citation

  • Attar, Andrea & Campioni, Eloisa & Piaser, Gwenaël, 2015. "On Competing Mechanisms under Exclusive Competition," TSE Working Papers 15-609, Toulouse School of Economics (TSE).
  • Handle: RePEc:tse:wpaper:29906
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    Cited by:

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    2. Attar, Andrea & Campioni, Eloisa & Mariotti, Thomas & Piaser, Gwenaël, 2021. "Competing mechanisms and folk theorems: Two examples," Games and Economic Behavior, Elsevier, vol. 125(C), pages 79-93.

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    More about this item

    Keywords

    Competing Mechanisms; Exclusive Competition; Incomplete Information;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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