On the equivalence of Bayesian and dominant strategy implementation

Alex Gershkov, Jacob K. Goeree, Alexey Kushnir, Benny Moldovanu, Xianwen Shi

Research output: Contribution to journalArticlepeer-review

62 Scopus citations

Abstract

We consider a standard social choice environment with linear utilities and independent, one-dimensional, private types. We prove that for any Bayesian incentive compatible mechanism there exists an equivalent dominant strategy incentive compatible mechanism that delivers the same interim expected utilities for all agents and the same ex ante expected social surplus. The short proof is based on an extension of an elegant result due to Gutmann, Kemperman, Reeds, and Shepp (1991). We also show that the equivalence between Bayesian and dominant strategy implementation generally breaks down when the main assumptions underlying the social choice model are relaxed or when the equivalence concept is strengthened to apply to interim expected allocations.

Original languageAmerican English
Pages (from-to)197-220
Number of pages24
JournalEconometrica
Volume81
Issue number1
DOIs
StatePublished - 2013

Bibliographical note

Publisher Copyright:
© 2013 The Econometric Society.

Keywords

  • Bayesian implementation
  • Dominant strategy implementation
  • Mechanism design

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