EconPapers    
Economics at your fingertips  
 

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

Abstract: 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.

New Economics Papers: this item is included in nep-des, nep-gth and nep-mic
Date: 2017-01
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.bu.edu/econ/files/2017/04/Lipman-Mechanisms.pdf

Related works:
Journal Article: Mechanisms With Evidence: Commitment and Robustness (2019) Downloads
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: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 ().

 
Page updated 2019-04-20
Handle: RePEc:bos:wpaper:wp2017-001