Mechanism design with general ex-ante investments

We investigate mechanism design problems wherein agents take hidden actions that affect the state distribution. As agents’ action space expands, set of mechanisms yields a targeted profile reduces. When can choose from various to change distribution in full-dimensional directions, payment rule induces along with given allocation becomes unique up constant. subsequently utilize this characterization result examine efficient and demonstrate pure-VCG mechanism, most basic form canonical VCG is only produces an when actions. Contrarily, widely used pivot frequently fails induce as long agent’s impacts private types other agents, even if one-dimensional.