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Mechanism Design and Communication Networks

Author

Listed:
  • Tristan Tomala

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • L. Renou

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper studies a mechanism design model where the players and the designer are nodes in a communication network. The authors characterize the communication networks (directed graphs) for which, in any environment (utilities and beliefs), every incentive compatible social choice function is implementable. They show that any incentive compatible social choice function is implementable on a given communication network, in all environments with either common independent beliefs and private values or a worst outcome, if and only if the network is strongly connected and weakly 2-connected. A network is strongly connected if for each player, there exists a directed path to the designer. It is weakly 2-connected if each player is either directly connected to the designer or indirectly connected to the designer through two disjoint paths, not necessarily directed. They couple encryption techniques together with appropriate incentives to secure the transmission of each player’s private information to the designer.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Tristan Tomala & L. Renou, 2010. "Mechanism Design and Communication Networks," Post-Print hal-00543601, HAL.
    • Handle: RePEc:hal:journl:hal-00543601
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    References listed on IDEAS

    as
    1. Dirk Bergemann & Stephen Morris, 2012. "Robust Implementation in Direct Mechanisms," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 4, pages 153-194, World Scientific Publishing Co. Pte. Ltd..
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    Citations

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    Cited by:

    1. Marie Laclau & Ludovic Renou & Xavier Venel, 2020. "Robust communication on networks," Papers 2007.00457, arXiv.org, revised Oct 2020.
    2. Rivera, Thomas J., 2018. "Incentives and the structure of communication," Journal of Economic Theory, Elsevier, vol. 175(C), pages 201-247.
    3. Larionov, Daniil & Pham, Hien & Yamashita, Takuro & Zhu, Shuguang, 2021. "First Best Implementation with Costly Information Acquisition," TSE Working Papers 21-1261, Toulouse School of Economics (TSE), revised Apr 2022.
    4. Peters, Michael & Troncoso-Valverde, Cristián, 2013. "A folk theorem for competing mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 953-973.
    5. Renault, Jérôme & Renou, Ludovic & Tomala, Tristan, 2014. "Secure message transmission on directed networks," Games and Economic Behavior, Elsevier, vol. 85(C), pages 1-18.
    6. Laclau, Marie & Renou, Ludovic & Venel, Xavier, 2024. "Communication on networks and strong reliability," Journal of Economic Theory, Elsevier, vol. 217(C).
    7. Mohamed Belhaj & Sebastian Bervoets & Frédéric Deroïan, 2013. "Network Design under Local Complementarities," Working Papers halshs-00796487, HAL.
    8. Rene Saran & Norovsambuu Tumennasan, 2015. "Implementation by Sortition in Nonexclusive Information Economies," Economics Working Papers 2015-13, Department of Economics and Business Economics, Aarhus University.
    9. Zhu, Shuguang, 2023. "Private disclosure with multiple agents," Journal of Economic Theory, Elsevier, vol. 212(C).
    10. Pinghan Liang, 2010. "Transfer of Authority within Hierarchy," Levine's Working Paper Archive 661465000000000139, David K. Levine.
    11. Marie Laclau & Ludovic Renou & Xavier Venel, 2024. "Communication on networks and strong reliability," Working Papers hal-03099678, HAL.

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    More about this item

    Keywords

    Mechanism Design; Communication Networks;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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