Mechanisms With Evidence: Commitment and Robustness

S-Tier
Journal: Econometrica
Year: 2019
Volume: 87
Issue: 2
Pages: 529-566

Authors (3)

Elchanan Ben‐Porath (not in RePEc) Eddie Dekel (not in RePEc) Barton L. Lipman (Boston University)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that in a class of I‐agent mechanism design problems with evidence, commitment is unnecessary, randomization has no value, and robust incentive compatibility has no cost. In particular, for each agent i, we construct a simple disclosure game between the principal and agent i where the equilibrium strategies of the agents in these disclosure games give their equilibrium strategies in the game corresponding to the mechanism but where the principal is not committed to his response. In this equilibrium, the principal obtains the same payoff as in the optimal mechanism with commitment. As an application, we show that certain costly verification models can be characterized using equilibrium analysis of an associated model of evidence.

Technical Details

RePEc Handle
repec:wly:emetrp:v:87:y:2019:i:2:p:529-566
Journal Field
General
Author Count
3
Added to Database
2026-01-25