Informational smallness and the scope for limiting information rents

A-Tier
Journal: Journal of Economic Theory
Year: 2010
Volume: 145
Issue: 6
Pages: 2260-2281

Authors (2)

Gizatulina, Alia (not in RePEc) Hellwig, Martin (Max-Planck-Gesellschaft)

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

For an incomplete-information model of public-good provision with interim participation constraints, we show that efficient outcomes can be approximated, with approximately full surplus extraction, when there are many agents and each agent is informationally small. The result holds even if agents' payoffs cannot be unambiguously inferred from their beliefs. The contrary result of Neeman [Z. Neeman, The relevance of private information in mechanism design, J. Econ. Theory 117 (2004) 55-77] rests on an implicit uniformity requirement that is incompatible with the notion that agents are informationally small because there are many other agents who have information about them.

Technical Details

RePEc Handle
repec:eee:jetheo:v:145:y:2010:i:6:p:2260-2281
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25