The robustness of the independent private value model in Bayesian mechanism design

B-Tier
Journal: Economic Theory
Year: 1998
Volume: 12
Issue: 2
Pages: 393-421

Authors (2)

Steven R. Williams (not in RePEc) Georgia Kosmopoulou (University of Oklahoma)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

In a Bayesian model of group decision-making, dependence among the agents' types has been shown to have a beneficial effect on the design of incentive compatible mechanisms that achieve the efficient choice associated with complete information. This effect is shown here to depend as much upon the use of large monetary transfers among the agents as it does upon dependence: if the transfers are bounded in magnitude, then nonexistence in the case of independence of an efficient, incentive compatible, ex ante budget-balanced and interim individually rational mechanism is robust to the introduction of a small amount of dependence among types. This robustness result supports the use of the simplifying assumption of independence in mechanism design.

Technical Details

RePEc Handle
repec:spr:joecth:v:12:y:1998:i:2:p:393-421
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25