Informational size and incentive compatibility with aggregate uncertainty

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Informational size and incentive compatibility with aggregate uncertainty

In McLean and Postlewaite (Econometrica 56, 1992, p. 2421), we analyzed pure exchange economies with asymmetrically informed agents. We defined a notion of informational size and showed that, when the aggregate information of all agents resolves nearly all the uncertainty regarding the state of nature, the conflict between incentive compatibility and (ex post) efficiency can be made small if ag...

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ژورنال

عنوان ژورنال: Games and Economic Behavior

سال: 2003

ISSN: 0899-8256

DOI: 10.1016/s0899-8256(03)00185-4