Imperfect Commitment and the Revelation Principle: the Multi-Agent Case with Transferable Utility
نویسندگان
چکیده
Bester and Strausz (2000) showed that the revelation principle of Bester and Strausz (2001) does not apply in a setting of many agents and no commitment. In their counterexample only one agent has private information. We show that if the parties can make ex ante transfers the revelation principle does extend to this setting. However, we show that it does not extend to a setting in which more than one agent has private information. JEL Classi cation No.: D23
منابع مشابه
Imperfect commitment and the revelation principle : the multi - agent case
We consider mechanism design problems with n agents when the mechanism designer cannot fully commit to an allocation function. With a single agent (n 5 1) optimal mechanisms can always be represented by direct mechanisms, under which each agent’s message set is the set of his possible types [Bester, H., Strausz, R., 2000. Contracting with imperfect commitment and the revelation principle: the s...
متن کاملImperfect Commitment and the Revelation Principle
This paper extends the revelation principle to environments in which the mechanism designer cannot fully commit to the outcome induced by the mechanism. We show that he may optimally use a direct mechanism under which truthful revelation is an optimal strategy for the agent. In contrast with the conventional revelation principle, however, the agent may not use this strategy with probability one...
متن کاملAbsence of Commitment in Principal-Agent Games
The Revelation Principle is the cornerstone of the theory of mechanism design. It shows that seemingly complex problems can be viewed as programming problems with constraints that give the agent the right incentives to truthfully reveal his private information. Needless to say, the theory is widely applicable. Nevertheless, one of the main assumptions underlying the Revelation Principle is not ...
متن کاملSome Notes on Dynamic Adverse Selection
This key tension in this set of topics centers around the role of commitment in longterm contracting. Previously, we assumed full commitment power on the part of the Principal in setting all aspects of a contract. In a dynamic setting, the ful llment of the early stages of a contract provides information to the Principal about the agents type. Naturally, the Principal will be tempted to act on...
متن کاملFuzzy transferable-utility games: a weighted allocation and related results
By considering the supreme-utilities among fuzzy sets and the weights among participants simultaneously, we introduce the supreme-weighted value on fuzzy transferable-utility games. Further, we provide some equivalent relations to characterize the family of all solutions that admit a potential on weights. We also propose the dividend approach to provide alternative viewpoint for the potential a...
متن کامل