Logo
Munich Personal RePEc Archive

A costly Bayesian implementable social choice function may not be truthfully implementable

Wu, Haoyang (2016): A costly Bayesian implementable social choice function may not be truthfully implementable.

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_74193.pdf]
Preview
PDF
MPRA_paper_74193.pdf

Download (96kB) | Preview

Abstract

The revelation principle is a fundamental theorem in many economics fields. In this paper, we construct a simple labor model to show that a social choice function which can be implemented costly in Bayesian Nash equilibrium may not be truthfully implementable. The key point is the strategy cost condition given in Section 4: each agent pays cost when performing strategy in the indirect mechanism, but will not pay the strategy cost in the direct mechanism. As a result, the revelation principle may not hold when agents' strategies are costly in the indirect mechanism.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.