Approximate Bayesian implementation and exact maxmin implementation: An equivalence

This paper provides a micro-foundation for approximate incentive compatibility using ambiguity aversion. In particular, we propose novel notion of interim compatibility, local and establish an equivalence between in Bayesian environment exact the presence small degree ambiguity. We then apply our result to implementation efficient allocations. identify two economic settings—including ones which approximately allocations are implementable agents informationally small—in locally when Bayesian. Applying those settings, conclude that exactly perceive