The University of Southampton
University of Southampton Institutional Repository

Information acquisition and efficient mechanism design

Bergemann, Dirk and Välimäki, Juuso (2002) Information acquisition and efficient mechanism design Econometrica, 70, (3), pp. 1007-1033. (doi:10.1111/1468-0262.00317).

Record type: Article

Abstract

We consider a general mechanism design setting where each agent can acquire (covert) information before participating in the mechanism. The central question is whether a mechanism exists that provides the efficient incentives for information acquisition ex-ante and implements the efficient allocation conditional on the private information ex-post.
It is shown that in every private value environment the Vickrey-Clark-Groves mechanism guarantees both ex-ante as well as ex-post efficiency. In contrast, with common values, ex-ante and ex-post efficiency cannot be reconciled in general. Sufficient conditions in terms of sub- and supermodularity are provided when (all) ex-post efficient mechanisms lead to private under- or over-acquisition of information.

Full text not available from this repository.

More information

Published date: 2002
Keywords: auctions, mechanism design, information acquisition, ex-ante and ex-post efficiency

Identifiers

Local EPrints ID: 33408
URI: http://eprints.soton.ac.uk/id/eprint/33408
ISSN: 0012-9682
PURE UUID: 50bf14ec-28dc-46cd-9110-798367d7da11

Catalogue record

Date deposited: 16 May 2006
Last modified: 17 Jul 2017 15:52

Export record

Altmetrics

Contributors

Author: Dirk Bergemann
Author: Juuso Välimäki

University divisions

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×