To make high-quality research more accessible and easier to explore.

Fields:
2 results ✕ Clear filters

A Sequential Solution to the Public Goods Problem

Econometrica 1985 53(1), 77
[Much attention has been devoted recently to the problem of implementing an optimal provision of public goods with imperfect information about preferences. The literature studies mechanisms with individual agents directly revealing information about their preferences, and focuses on two types of truthful equilibria: dominant strategy and Bayesian-Nash. We introduce "Stackelberg" mechanisms with truth-telling a dominant strategy for all agents but the first. The first agent plays "before" the other maximizing his expected utility on the assumption that others will reveal their true preferences. We present sufficient conditions for the construction of Stacekelberg mechanisms which yield an efficient provision of public goods, balance the budget, and induce every participant to reveal their true preferences. These results strengthen and extend the known results of the Bayesian-Nash approach.]

Optimal Selling Strategies under Uncertainty for a Discriminating Monopolist when Demands are Interdependent

Econometrica 1985 53(2), 345
[This paper deals with the optimal design of resource allocation mechanisms in the presence of asymmetric information. A buyer's valuation function is allowed to depend on the characteristics of other buyers as well as his own and sufficient conditions are provided under which the seller can extract the full surplus from the buyers in an "ex post Nash" equilibrium. The result is then applied to the important problem of optimal auction design.]