The Role of the Common Prior in Robust Implementation

Dirk Bergemann and Stephen Morris

No 1628, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: We consider the role of the common prior for robust implementation in an environment with interdependent values. Specifically, we investigate a model of public good provision which allows for negative and positive informational externalities. In the corresponding direct mechanism, the agents' reporting strategies are strategic complements with negative informational externalities and strategic substitutes with positive informational externalities. We derive the necessary and sufficient conditions for robust implementation in common prior type spaces and contrast this with our earlier results without the common prior. In the case of strategic complements the necessary and sufficient conditions for robust implementation do not depend on the existence of a common prior. In contrast, with strategic substitutes, the implementation conditions are much weaker under the common prior assumption.

Keywords: Common prior; Correlated equilibrium; Ex post equilibrium; Mechanism design; Robust implementation; Rationalizability; Strategic complements; Strategic substitutes; Uniqueness (search for similar items in EconPapers)
JEL-codes: C79 D82 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2007-09
New Economics Papers: this item is included in nep-cse and nep-gth
Note: CFP 1225.
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of the European Economic Association (April-May 2008), 6(2-3): 551-559

Downloads: (external link)
https://cowles.yale.edu/sites/default/files/files/pub/d16/d1628.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Chapter: The Role of the Common Prior in Robust Implementation (2012)
Journal Article: The Role of the Common Prior in Robust Implementation (2008)
Working Paper: The Role of the Common Prior in Robust Implementation (2007)
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:1628

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 ().