Mediated Contracts and Mechanism Design

Strausz, Roland (May 2010): Mediated Contracts and Mechanism Design. SFB/TR 15 Discussion Paper No. 322

Abstract

This note relates the mechanisms that are based on mediated contracts of Rahman and Obara (2010) to the mechanisms of Myerson (1982). It shows that the mechanisms in Myerson (1982) are more general in that they encompass the mechanisms based on mediated contracts. It establishes an equivalence between the two classes if mediated contracts are allowed to be stochastic.

• Item Type: Paper (Discussion Paper)
• Keywords: mediatedcontract, mechanismdesign, revelationprinciple, moralhazard
• Faculties: Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems; Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > A1 - Allokationsmechanismen in Organisationen und Märkten
• Subjects: 300 Social sciences > 330 Economics
• Language: English