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A network solution to robust implementation: the case of identical but unknown distributions

Author

Listed:
  • Mariann Ollar

    (Edin. - University of Edinburgh)

  • Antonio Penta

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

We study robust mechanism design in environments in which agents commonly believe that others' types are identically distributed, but we do not assume that the actual distribution is common knowledge, nor that it is known to the designer. First, we characterize all incentive compatible transfers under these assumptions. Second, we characterize the conditions under which full implementation is possible via direct mechanisms, that only elicit payoff relevant information, and the transfer schemes which achieve it whenever possible. The full implementation results obtain from showing that the problem can be transformed into one of designing a network of strategic externalities, subject to suitable constraints which are dictated by the incentive compatibility requirements.

Suggested Citation

  • Mariann Ollar & Antonio Penta, 2023. "A network solution to robust implementation: the case of identical but unknown distributions," Post-Print hal-04198678, HAL.
    • Handle: RePEc:hal:journl:hal-04198678
    DOI: 10.1093/restud/rdac084
    as

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    Citations

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    Cited by:

    1. Emiliano Catonini & Antonio Penta, 2024. "Backward Induction Reasoning beyond Backward Induction," Working Papers 1462, Barcelona School of Economics.
    2. Galeotti, A. & Golub, B. & Goyal, S. & Talamas, E. & Tamuz, O., 2024. "Robust Market Interventions," Janeway Institute Working Papers 2425, Faculty of Economics, University of Cambridge.
    3. Ritesh Jain & Michele Lombardi & Antonio Penta, 2024. "Strategically Robust Implementation," Working Papers 1461, Barcelona School of Economics.
    4. Galeotti, A. & Golub, B. & Goyal, S. & Talamas, E. & Tamuz, O., 2024. "Robust Market Interventions," Cambridge Working Papers in Economics 2456, Faculty of Economics, University of Cambridge.

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