|
EconStor >
Max Planck Institute for Research on Collective Goods, Bonn >
Preprints of the Max Planck Institute for Research on Collective Goods >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/32242
|
| | |
| Title: | | Informational smallness and the scope for limiting information rents  |
| Authors: | | Gizatulina, Alia Hellwig, Martin |
| Issue Date: | | 2009 |
| Series/Report no.: | | Preprints of the Max Planck Institute for Research on Collective Goods 2009,28 |
| Abstract: | | For an incomplete-information model of public-good provision with interim participation constraints, we show that efficient outcomes can be approximated, with approximately full surplus extraction, when there are many agents and each agent is informationally small. The result holds even if agents' payoffs cannot be unambiguously inferred from their beliefs, i.e., even if the so-called BDP property (Beliefs Determine Preferences) of Neeman (2004) does not hold. The contrary result of Neeman (2004) rests on an implicit uniformity requirement that is incompatible with the notion that agents are informationally small because there are many other agents who have information about them. |
| Subjects: | | surplus extraction mechanism design BDP informational smallness correlated information |
| JEL: | | D40 D44 D80 D82 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Preprints of the Max Planck Institute for Research on Collective Goods
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/32242
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|