Correlated Information and Mechanism Design

摘要: In models of asymmetric information, possession private information leads to rents for the possessors. This induces mechanism designers distort away from efficiency. The authors show that this is an artifact presumption independently distributed. Rent extraction in a large class design games analyzed, and necessary sufficient condition arbitrarily small provided. Additionally, two-person bargaining game shown have efficient solution under first-order stochastic dominance hazard rate condition. Similar conditions allow full rent Milgrom-Weber auctions.