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A Sufficient Condition for Bayesian Implementation with Side Payments

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  • Bong-Ju Kim

    (National Assembly Research Service)

Abstract

It is well-known that with three agents and more, Bayesian monotonicity and the selfselection condition are both necessary and sufficient for Bayesian implementation in a general environment. Matsushima (1993) identified a condition, Condition 1, which is equivalent to Bayesian monotonicity under the strict self-selection (SSS) condition in an environment with side payments. This paper identifies a condition that is equivalent to Bayesian monotonicity under the self-selection condition in an environment with side payments when the prior probability is independently distributed. This condition identified here is weak in that its combination with the self-selection condition is weaker than the SSS condition.

Suggested Citation

  • Bong-Ju Kim, 2013. "A Sufficient Condition for Bayesian Implementation with Side Payments," Korean Economic Review, Korean Economic Association, vol. 29, pages 429-445.
    • Handle: RePEc:kea:keappr:ker-20131231-29-2-08
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    References listed on IDEAS

    as
    1. Palfrey, Thomas R & Srivastava, Sanjay, 1989. "Implementation with Incomplete Information in Exchange Economies," Econometrica, Econometric Society, vol. 57(1), pages 115-134, January.
    2. Matsushima Hitoshi, 1993. "Bayesian Monotonicity with Side Payments," Journal of Economic Theory, Elsevier, vol. 59(1), pages 107-121, February.
    3. R.J. Aumann & S. Hart (ed.), 2002. "Handbook of Game Theory with Economic Applications," Handbook of Game Theory with Economic Applications, Elsevier, edition 1, volume 3, number 3.
    4. Palfrey, Thomas R & Srivastava, Sanjay, 1989. "Mechanism Design with Incomplete Information: A Solution to the Implementation Problem," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 668-691, June.
    5. Dilip Mookherjee & Stefan Reichelstein, 1990. "Implementation via Augmented Revelation Mechanisms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(3), pages 453-475.
    6. Dutta Bhaskar & Sen Arunava, 1994. "Bayesian Implementation: The Necessity of Infinite Mechanisms," Journal of Economic Theory, Elsevier, vol. 64(1), pages 130-141, October.
    7. K. J. Arrow & A. K. Sen & K. Suzumura (ed.), 2002. "Handbook of Social Choice and Welfare," Handbook of Social Choice and Welfare, Elsevier, edition 1, volume 1, number 1.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bayesian Implementation; Side Payments; Strict Self-selection; Bayesian Monotonicity;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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