Efficient dynamic mechanisms with interdependent valuations

Wei He and Jiangtao Li

Games and Economic Behavior, 2016, vol. 97, issue C, 166-173

Abstract: This paper considers a dynamic environment with interdependent valuations and evolving private information. Under the assumption of “independent types”, we construct an efficient, incentive-compatible mechanism that is also budget-balanced in every period of the game. Our mechanism works in environments where in each period, each agent observes her own realized outcome-decision payoff from the previous period. This extends the insight of Mezzetti (2004) to the dynamic setting.

Keywords: Dynamic mechanism design; Efficiency; Observable payoff; Incentive compatibility; Budget balance (search for similar items in EconPapers)
JEL-codes: D82 D86 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:97:y:2016:i:c:p:166-173

DOI: 10.1016/j.geb.2016.04.008

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