Optimal Mechanism Design: Type-Independent Preference Orderings

Hitoshi Matsushima

No CIRJE-F-955, CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo

Abstract: We investigate revenue maximization in general allocation problems with incomplete information, where we assume quasi-linearity, private values, independent type distributions, and single-dimensionality of type spaces. We require a mechanism to satisfy strategy-proofness and ex-post individual rationality. We assume that each player has a type-independent preference ordering over deterministic allocations. We show that the Myerson’s technique to solve the incentive-constrained revenue maximization problem in single-unit auctions can be applied to general allocation problems, where the incentive-constrained revenue maximization problem can be reduced to the simple maximization problem of the sum of players’ marginal revenues without imposing any incentive constraint.

Pages: 15 pages
Date: 2015-02
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.cirje.e.u-tokyo.ac.jp/research/dp/2015/2015cf955.pdf (application/pdf)

Related works:
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:tky:fseres:2015cf955

Access Statistics for this paper

More papers in CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo Contact information at EDIRC.
Bibliographic data for series maintained by CIRJE administrative office ().