EconPapers    
Economics at your fingertips  
 

Efficient Mechanism Design

Vijay Krishna and Motty Perry ()

Game Theory and Information from University Library of Munich, Germany

Abstract: We study Bayesian mechanism design in situations where agents' information may be multi-dimensional, concentrating on mechanisms that lead to efficient allocations. Our main result is that a generalization of the well-known Vickrey-Clarke-Groves mechanism maximizes the planner's "revenue'' among all efficient mechanisms. This result is then used to study multiple object auctions in situations where bidders have privately known "demand curves'' and extended to include situations with complementarities across objects or externalities across bidders. We also illustrate how the main result may be used to analyze the possibility of allocating both private and public goods efficiently when budget balance considerations are important. The generalized VCG mechanism, therefore, serves to unify many results in mechansim design theory.

Keywords: Mechanism Design; Efficiency; Incentives; Auctions (search for similar items in EconPapers)
JEL-codes: D44 D61 D82 (search for similar items in EconPapers)
Pages: 24 pages
Date: 1997-03-25, Revised 1998-04-28
Note: Type of Document - SciWord-LaTex; prepared on IBM PC ; to print on HP Laserjet 4; pages: 24 ; figures: None
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (60) Track citations by RSS feed

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/9703/9703010.tex (application/x-tex)
https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/9703/9703010.ps.gz (application/postscript)
https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/9703/9703010.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:wpa:wuwpga:9703010

Access Statistics for this paper

More papers in Game Theory and Information from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

 
Page updated 2021-05-08
Handle: RePEc:wpa:wuwpga:9703010