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Delayed Verification Mechanism for Dynamic Implementation

Author

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  • Olga Gorelkina

    (Max Planck Institute for Research on Collective Goods)

Abstract

This paper introduces a virtually efficient mechanism in a setting with sequentially arriving agents who hold informative signals about future types. To reveal the information the principal organises betting on future type reports. An agent’s betting reward depends on how accurately the prior updated on his report predicts the type reports observed in the following period. The mechanism satisfies participation constraints and generates no deficit after any reported history.

Suggested Citation

  • Olga Gorelkina, 2014. "Delayed Verification Mechanism for Dynamic Implementation," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2014_11, Max Planck Institute for Research on Collective Goods.
    • Handle: RePEc:mpg:wpaper:2014_11
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    File URL: http://www.coll.mpg.de/pdf_dat/2014_11online.pdf
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    References listed on IDEAS

    as
    1. Dirk Bergemann & Juuso V‰lim‰ki, 2010. "The Dynamic Pivot Mechanism," Econometrica, Econometric Society, vol. 78(2), pages 771-789, March.
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    More about this item

    Keywords

    Dynamic mechanisms; scoring rule; Bayesian learning; conjugate priors;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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