Mechanism design and intentions

descriptionPublicationkeyboard_double_arrow_right Article , Research , Other literature type , Preprint 01 Jan 2012Embargo end date: 14 Mar 2012 Switzerland English Publisher:Elsevier BVJournal:Journal of Economic Theory, volume 163, pages 557-603 (issn: 0022-0531,

Copyright policy )Funded by:SNSF | Reciprocity and the Desig..., SNSF | Automatic recognition of ...

Authors: Felix J. Bierbrauer; Nick Netzer;

doi: 10.1016/j.jet.2016.02.013 , 10.2139/ssrn.2021860 , 10.2139/ssrn.2747237 , 10.5167/uzh-61224 , 10.5167/uzh-126182

handle: 10419/77586 , 10419/111186 , 10419/144908 , 11858/00-001M-0000-0029-C953-2

Mechanism design and intentions

- Summary
- Subjects
- Metrics

Abstract

We introduce intention-based social preferences into a mechanism design framework with independent private values and quasilinear payoffs. For the case where the designer has no information about the intensity of social preferences, we provide conditions under which mechanisms which have been designed under the assumption that agents are selfish can still be implemented. For the case where precise information about social preferences is available, we show that any tension between efficiency, incentive-compatibility, and voluntary participation may disappear. Impossibility results such as the one by Myerson and Satterthwaite (1983) are then turned into possibility results. We also provide a systematic account of the welfare implications of kindness sensations.

Country

Switzerland

Related Organizations

View all View all

Keywords

Mechanism Design, Reciprocity, 2002 Economics and Econometrics, D86 - Economics of Contract: Theory, reciprocity, Revelation Principle, 10007 Department of Economics, D82 - Asymmetric and Private Information; Mechanism Design, ddc:330, Mechanism Design, Psychological Games, Social Preferences, Intentions, Reciprocity, Revelation Principle, mechanism design, psychological games, 330 Economics, Austauschtheorie, D82, D02, D03, D86, Spieltheorie, Mechanism design, Social choice, C70 - General, Intentions, D02 - Institutions: Design, Formation, Operations, and Impact, Auctions, bargaining, bidding and selling, and other market models, ECON Department of Economics, Social Preferences, C72, Mechanism design, psychological games, social preferences, reciprocity, C70, Psychological Games, experimentelle Spieltheorie, Austauschtheorie (Soziologie), C72 - Noncooperative Games, Soziale Wohlfahrtsfunktion, Präferenz, Asymmetrische Information, Nichtkooperatives Spiel, D03 - Behavioral Microeconomics: Underlying Principles, Mechanismus-Design-Theorie, social preferences, jel: jel:D82, jel: jel:D86, jel: jel:D02, jel: jel:D03, jel: jel:C70, jel: jel:C72

Impact byBIP!

	selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	34
	popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.	Top 10%
	influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	Top 10%
	impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.	Top 10%