Reduced Form Implementation for Environments With Value Interdependencies

13 Pages Posted: 21 Jul 2019

See all articles by J. K. Goeree

J. K. Goeree

UNSW Business School

Alexey Kushnir

Carnegie Mellon University - David A. Tepper School of Business

Date Written: July 27, 2016

Abstract

We provide a unified and simple treatment of reduced-form implementation for general social choice problems and extend it to environments with value interdependencies. We employ the geometric approach developed by Goeree and Kushnir (2016) to characterize the set of feasible interim agent values (agent utilities excluding transfers) by deriving the analytical expression of its support function. As an application, we use the reduced-form implementation to analyze second-best mechanisms in environments with value interdependencies.

Keywords: Mechanism design, Convex analysis, Reduced-form implementation, Social choice, Interdependent values, Convex set, Support function

JEL Classification: D44 D82

Suggested Citation

Goeree, J. K. and Kushnir, Alexey I., Reduced Form Implementation for Environments With Value Interdependencies (July 27, 2016). Games and Economic Behavior, Vol. 99, 2016, Available at SSRN: https://ssrn.com/abstract=3422868

J. K. Goeree

UNSW Business School

UNSW Business School
High St
Sydney, NSW 2052
Australia

Alexey I. Kushnir (Contact Author)

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
12
Abstract Views
150
PlumX Metrics