• search hit 4 of 8
Back to Result List

Principled Mechanism Design with Evidence

  • We cast mechanism design with evidence in the framework of Myerson (1982), whereby his generalized revelation principle directly applies and yields standard notions of incentive compatible direct mechanisms. Their specific nature depends on whether the agent's (verifiable) presentation of evidence is contractually controllable, however. For deterministic implementation, we show that, in general, such control has value, and we offer two independent conditions under which this value vanishes, one on evidence (WET) and another on preferences (TIWO). Allowing for fully stochastic mechanisms, we also show how randomization generally has value and clarify to what extent this value vanishes under the common assumption of evidentiary normality (NOR). While, in general, the value of control extends to stochastic implementation, neither control nor randomization have any value if NOR holds together with WET or TIWO.

Download full text files

Export metadata

Additional Services

Share in Twitter Search Google Scholar
Metadaten
Document Type:Working Paper
Language:English
Author(s):Sebastian Schweighofer-KodritschORCiD, Roland Strausz
Parent Title (English):Berlin School of Economics Discussion Papers
Hertie Collections (Serial Number):Berlin School of Economics Discussion Papers (30)
Publication year:2023
Publishing Institution:Hertie School
Number pages:63
Related URL:https://berlinschoolofeconomics.de/insights/discussion-papers
DOI:https://doi.org/10.48462/opus4-5207
Release Date:2023/12/15
Tag:Evidence; Mechanism Design; Revelation Principle; Value of Control; Value of Randomization; Verifiable Information
Edition:No. 30
Hertie School Research:BerlinSchoolOfEcon_Discussion_Papers
Licence of document (German):Creative Commons - CC BY - 4.0 International
Verstanden ✔
Diese Webseite verwendet technisch erforderliche Session-Cookies. Durch die weitere Nutzung der Webseite stimmen Sie diesem zu. Unsere Datenschutzerklärung finden Sie hier.