Journal of Political Economy Vol. 97 No. 3 1989
Mechanism Design with Incomplete Information: A Solution to the Implementation Problem
Abstract
The main result of this paper is that the multiple equilibrium problem in mechanism design can be avoided in private-value models if agents do not use weakly dominated strategies in equilibrium. We show that in such settings, any incentive-compatible allocation rule can be made the unique equilibrium outcome to a mechanism. We derive a general necessary condition for unique implementation that implies that the positive result for private-value models applies with considerably less generality to common-value settings.
- Volume
- 97
- Issue
- 3
- Pages
- 668-691
- Sources
- bibtex:phds-export.bib