Coalitional Bayesian Nash implementation in differential information economies

Citation
G. Hahn et Nc. Yannelis, Coalitional Bayesian Nash implementation in differential information economies, ECON THEORY, 18(2), 2001, pp. 485-509
Citations number
30
Categorie Soggetti
Economics
Journal title
ECONOMIC THEORY
ISSN journal
09382259 → ACNP
Volume
18
Issue
2
Year of publication
2001
Pages
485 - 509
Database
ISI
SICI code
0938-2259(200109)18:2<485:CBNIID>2.0.ZU;2-I
Abstract
A mechanism coalitionally implements a social choice set if any outcome of the social choice set can be achieved as a coalitional Bayesian Nash equili brium of a mechanism and vice versa. We say that a social choice set is coa litionally implementable if there is a mechanism which coalitionally implem ents it. Our main theorem proves that a social choice set is coalitionally implementable if and only if it is interim individually rational, interim e fficient, coalitional Bayesian incentive compatible, and satisfies a coalit ional Bayesian monotonicity condition as well as a closure condition. As an application of our main result, we show that the private core and the priv ate Shapley value of an economy with differential information are coalition ally implementable.