We demonstrate how the standard usage of the random incentive system in ambiguity experiments is not incentive compatible if the decision maker is ambiguity averse. We propose a slight modification of the procedure in which the randomization takes place before decisions are made and the state is realized and prove that if subjects evaluate the experimental environment in that way (first risk, s...

The choice of strategies by bidders who are allowed to communicate in auctions is studied. Using the tools of mechanism design, the possible outcomes of communication between bidders participating in a series of simultaneous first-price auctions are investigated. A variety of mechanisms are incentive compatible when side payments are not allowed. When attention is restricted to mechanisms that ...

We consider the performance and incentive compatibility of voting rules in a Bayesian environment with independent private values and at least three alternatives. It is shown that every (ex-ante) Pareto efficient ordinal rule among neutral rules is incentive compatible under a symmetry assumption on alternatives. Furthermore, we prove that there exists an incentive compatible cardinal rule whic...

We provide a characterization of virtual Bayesian implementation in pure strategies for environments satisfying no-total-indifference. A social choice function in such environments is virtually Bayesian implementable if and only if it satisfies incentive compatibility and a condition we term virtual monotonicity. The latter is weaker than Bayesian monotonicity known to be necessary for Bayesian...

This paper studies allocation problems with and without monetary transfers, such as multi-unit auctions, school choice, and course assignment. For this class of problems, we introduce a generalized random priority mechanism with budgets (GRP). This mechanism is always ex post incentive compatible and feasible. Moreover, as the market grows large, this mechanism can approximate any incentive com...

Screening models are used to analyze contracting in many subfields of economics like regulation, labor economics, monopoly pricing, taxation or finance. Most models assume single crossing. This simplifies the analysis as local incentive compatibility is in this case sufficient for global incentive compatibility. If single crossing is violated, global incentive compatibility constraints have to ...

This thesis designs and analyzes auctions for persistent goods in three domains with arriving and departing bidders, quantifying tradeoffs between design objectives. The central objective is incentive compatibility, ensuring that it is in bidders’ best interest to reveal their private information truthfully. Other primary concerns are expressiveness, i.e. the richness of the effective bidding l...

In mechanism design it is typical to impose incentive compatibility and then derive an optimal mechanism subject to this constraint. By replacing the incentive compatibility requirement with the goal of minimizing expected ex-post regret, we are able to adapt techniques of statistical machine learning to the design of payment rules. This computational approach to mechanism design is applicable ...

Single-item auctions have many desirable properties. Mechanisms exist to ensure optimality, incentive compatibility and market-clearing prices. When multiple items are offered through individual auctions, a bidder wanting a bundle of items faces an exposure problem if the bidder places a high value on a combination of goods but a low value on strict subsets of the desired collection. To remedy ...