On the equivalence of Bayesian and dominant strategy implementation for environments with nonlinear utilities

Alexey Kushnir () and Shuo Liu ()
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Shuo Liu: University of Zurich

Economic Theory, 2019, vol. 67, issue 3, No 6, 617-644

Abstract: Abstract We extend the equivalence between Bayesian and dominant strategy implementation (Manelli and Vincent in Econometrica 78:1905–1938, 2010; Gershkov et al. in Econometrica 81: 197–220, 2013) to environments with nonlinear utilities satisfying a property of increasing differences over distributions and a convex-valued assumption. The new equivalence result produces novel implications to the literature on the principal-agent problem with allocative externalities, environmental mechanism design, and public good provision.

Keywords: Bayesian implementation; Dominant strategy implementation; Mechanism design; Nonlinear utilities; Increasing differences over distributions (search for similar items in EconPapers)
JEL-codes: D82 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s00199-018-1124-x

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