Bayesian and Dominant Strategy Implementation Revisited

Alex Gershkov, Benny Moldovanu () and Xianwen Shi

Working Papers from University of Toronto, Department of Economics

Abstract: We consider a standard social choice environment with linear utility and one-dimensional types. We show by counterexample that, when there are at least three physical alternatives, Bayes-Nash Incentive Compatibility (BIC) and Dominant Strategy Incentive Compatibility (DIC) need no longer be equivalent. The example with three alternatives is minimal since we do obtain a general equivalence result for settings with only two social alternatives. Our negative result does not mathematically contradict the Manelli and Vincent (2010) equivalence obtained in a one-object auction setting, but it shows that BIC-DIC equivalence is only valid in restrictive environments. Our insights are based on mathematical results about the existence of monotone measures with given monotone marginals.

Keywords: Bayesian Implementation; Dominant Strategy Implementation; Equivalence (search for similar items in EconPapers)
JEL-codes: D80 D82 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2011-02-10
New Economics Papers: this item is included in nep-cis, nep-cta and nep-gth
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.economics.utoronto.ca/public/workingPapers/tecipa-422.pdf Main Text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tor:tecipa:tecipa-422

Access Statistics for this paper

More papers in Working Papers from University of Toronto, Department of Economics 150 St. George Street, Toronto, Ontario.
Bibliographic data for series maintained by RePEc Maintainer ().