Mechanisms with Evidence: Commitment and Robustness
Elchanan Ben-Porath (),
Eddie Dekel and
Barton Lipman ()
Additional contact information
Elchanan Ben-Porath: Department of Economics and Center for Rationality, Hebrew University
No WP2017-001, Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics
We show that in a class of I-agent mechanism design problems with evidence, commitment is unnecessary, randomization has no value, and robust incentive compatibility has no cost. In particular, for each agent i, we construct a simple disclosure game between the principal and agent i where the equilibrium strategies of the agents in these disclosure games give their equilibrium strategies in the game corresponding to the mechanism but where the principal is not committed to his response. In this equilibrium, the principal obtains the same payo as in the optimal mechanism with commitment. As an application, we show that certain costly veri cation models can be characterized using equilibrium analysis of an associated model of evidence.
Pages: 63 pages
New Economics Papers: this item is included in nep-des, nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: Mechanisms With Evidence: Commitment and Robustness (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bos:wpaper:wp2017-001
Access Statistics for this paper
More papers in Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Program Coordinator ().