VIRTUAL IMPLEMENTATION IN SEPARABLE BAYESIAN ENVIRONMENTS USING SIMPLE MECHANISMS

This paper studies Virtual implementation in Bayesian environments and identifies separability conditions under which social choice function s can be implemented via the iterative removal of strictly dominated s trategies by simple mechanisms. Our mechanisms are simple in that (1) implementation is achieved in two rounds of iteratively removing stric tly dominated strategies and (2) they employ a message space that is s mall and invariant to the closeness of the approximation. Journal of E conomic Literature Classification Numbers: C72, D82. (C) 1995 Academic Press, Inc.