Mechanism Design with Acquisition of Correlated Information
33 Pages Posted: 7 Nov 2012
Date Written: August 25, 2012
Consider a mechanism design setting in which agents acquire costly information about an unknown, payoff-relevant state of nature. Information gathering is covert. We investigate conditions under which (i) efficient implementation and (ii) full surplus extraction are Bayesian incentive compatible and interim individually rational.
Keywords: information acquisition, full surplus extraction, efficient implementation, mechanism design, Bayesian implementation
JEL Classification: D44, D82
Suggested Citation: Suggested Citation