
doi: 10.3982/te2226
handle: 10419/217059
We study full surplus extraction and implementation in dynamic environments. We exploit intertemporal correlations of agents' types to construct within-period ex post incentive compatible mechanisms. First, we formulate one-shot environments, in which a single agent has a hidden type and the planner observes a public signal about the agent's type after a type-contingent allocation is chosen. We propose necessary and sufficient conditions for full surplus extraction (strong detectability) and for implementability of the targeted allocation rule (weak detectability) in this one-shot problem. We decompose the general dynamic problem into one-shot problems, and obtain sufficient conditions for surplus extraction and implementation.
D82, C73, ddc:330, full surplus extraction, Dynamic mechanism design, perfect Bayesian equilibrium, D47, revenue maximization, D86
D82, C73, ddc:330, full surplus extraction, Dynamic mechanism design, perfect Bayesian equilibrium, D47, revenue maximization, D86
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