Overcoming Participation Constraints

Hanming Fang () and Peter Norman ()

No 1511, Cowles Foundation Discussion Papers from Cowles Foundation, Yale University

Abstract: In incomplete information environments with transferable utility, efficient outcomes are generally implementable unless interim or ex post participation constraints are imposed on the problem. In this paper we show that linking a sufficiently large number of independent but possibly unrelated social decisions, a slightly perturbed Groves mechanism can implement an efficient outcome with probability arbitrarily close to one, while respecting all participation, incentive and balanced budget constraints.

Keywords: Linking; Participation constraints; Perturbed groves mechanism (search for similar items in EconPapers)
JEL-codes: D61 D82 H41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec
Date: 2005-05
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Related works:
Working Paper: Overcoming Participation Constraints (2005)
Working Paper: Overcoming Participation Constraints (2006)
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