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Mechanism Design when players´ preferences and information coincide

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Listed:
  • Marcelo Caffera
  • Juan Dubra
  • Nicolás Figueroa

Abstract

It is well known that when players have private information, vis a vis the designer, and their preferences coincide it is hard to implement the socially desirable outcome. We show that with arbitrarily small fines and arbitrarily noisy inspections, the social choice correspondence can be fully implemented (truth telling is the unique Nash equilibrium).

Suggested Citation

  • Marcelo Caffera & Juan Dubra & Nicolás Figueroa, 2016. "Mechanism Design when players´ preferences and information coincide," Documentos de Trabajo/Working Papers 1603, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    • Handle: RePEc:mnt:wpaper:1603
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    References listed on IDEAS

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    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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