Robust Implementation in Direct Mechanisms

Dirk Bergemann and Stephen Morris

No 1561R2, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: A social choice function is robustly implementable if there is a mechanism under which the process of iteratively eliminating strictly dominated messages leads to outcomes that agree with the social choice function for all beliefs at every type profile. In an interdependent value envi­ronment with single crossing preferences, we identify a contraction property on the preferences which together with strict ex post incentive compatibility is sufficient to guarantee robust imple­mentation in the direct mechanism. Strict ex post incentive compatibility and the contraction property are also necessary for robust implementation in any mechanism, including indirect ones. The contraction property requires that the interdependence is not too large. In a linear signal model, the contraction property is equivalent to an interdependence matrix having all eigenvalues smaller than one.

Keywords: Mechanism design; Implementation; Robustness; Common knowledge; Interim equilibrium; Iterative deletion; Direct mechanism (search for similar items in EconPapers)
Pages: 39 pages
Date: 2006-03, Revised 2009-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (57)

Published in Review of Economic Studies (2009), 76: 1175-1204

Downloads: (external link)
https://cowles.yale.edu/sites/default/files/files/pub/d15/d1561-r2.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Chapter: Robust Implementation in Direct Mechanisms (2012)
Journal Article: Robust Implementation in Direct Mechanisms (2009)
Working Paper: Robust Implementation in Direct Mechanisms (2009)
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:cwl:cwldpp:1561r2

Ordering information: This working paper can be ordered from
Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
The price is None.

Access Statistics for this paper

More papers in Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University Yale University, Box 208281, New Haven, CT 06520-8281 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Brittany Ladd ().