Implementability by a Canonical Indirect Mechanism of an Optimal Two-Dimensional Direct Mechanism
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Date
2017-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Scientific Research
Abstract
The present paper investigates the multi-dimensional mechanism design in
which buyers have taste and budget as their private information. The paper
shows an easy proof of a two-dimensional optimal direct mechanism by a
one-dimensional indirect mechanism: A canonical mechanism in the traditional
one-dimensional setting, i.e., function of one variable, the buyer’s taste.
It also sheds light on where the difficulty lies implementability of a general
direct mechanism—not optimal—by a canonical mechanism.
Description
Keywords
Multi-Dimensional Mechanism, Indirect Mechanism, Budget Constraint, Revelation Principle
Citation
Theoretical Economics Letters, 2017, 7, 187-192