Implementation by decent mechanisms ¤
نویسنده
چکیده
We address the design of optimal mechanisms for bargaining problems subject to incomplete information on reservation values. We characterize decent rules, those that are Pareto Optimal in the constrained set of rules satisfying strategy proofness, individual rationality and weak e±ciency a condition on ex-post e±ciency. We prove that for given concave utilities of the agents, the decent rule is unique and is implemented by the Filtered Demands game. It is a natural procedure for dynamic bargaining under incomplete information where players submit their claims over time to a passive agent who minimizes transmission of information between the players.
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