Implementation Theory with Incomplete Information

Abstract

This paper surveys implementation theory when players have incomplete or asymmetric information, especially in economic environments. After the basic problem is introduced, the theory of implementation is summarized. Some coalitional considerations for implementation problems are discussed. For economies with asymmetric information, cooperative games based on incentive compatibility constraints or Bayesian incentive compatible mechanisms are derived and examined.

Keywords: Incentive Compatibility, Asymmetric Information, Incomplete Information, Implementation, Bayesian-Nash Revelation Principle, Mechanisms, Core, Cooperative Games, Nontransferable Utility

JEL Classification: C71, D82, D51, D71, C72