We survey the recent literature on the role of information in mechanism design. First, we discuss an emerging literature on the role of endogenous payoff and strategic information for the design and the efficiency of the mechanism. We specifically consider information management in the form of acquisition of new information or disclosure of existing information. Second, we argue that in the presence of endogenous information, the robustness of the mechanism to the type space and higher order beliefs becomes a natural desideratum. We discuss recent approaches to robust mechanism design and robust implementation.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
5494.
Find related papers by JEL classification: D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
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CRÉMER, Jacques & SPIEGEL, Yossi & ZHENG, Charles, 2005.
"Optimal Search Auctions,"
IDEI Working Papers
293, Institut d'Économie Industrielle (IDEI), Toulouse.
[Downloadable!]
Other versions:
Jacques Cremer & Yossi Spiegel & Charles Z. Zheng, 2005.
"Optimal Search Auctions,"
Discussion Papers
1421, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
[Downloadable!]