Multidimensional bargaining and posted prices

A-Tier
Journal: Journal of Economic Theory
Year: 2021
Volume: 196
Issue: C

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

A seller and a buyer bargain over the quantities and prices of multiple goods. Both agents have private information about their preferences. Utility is quasilinear in money. We show that a deterministic mechanism satisfies (i) dominant-strategy incentive compatibility, (ii) ex-post individual rationality and (iii) ex-post budget balance if and only if it is a posted-price mechanism. A similar, more general result holds if (iii) is replaced by ex-post collusion-proofness and a no-free lunch condition. We provide a unified proof of both findings via the property of non-bossiness.

Technical Details

RePEc Handle
repec:eee:jetheo:v:196:y:2021:i:c:s0022053121001344
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25