A Tight Sufficient Condition for Recursive Formulation of Dynamic Implementation Problems
21 Pages Posted: 17 Jun 2016
Date Written: June 9, 2016
Abstract
This note explores conditions that admit recursive representation for a class of dynamic mechanism design problems. We derive a tight sufficient condition, called the common state property (CSP), which ensures that temporary incentive constraints guarantee implementability, and so allows to characterize the principal's problem recursively. The condition imposes no restrictions on agent's preferences and only concerns the properties of the evolution of private information.
Keywords: First order approach, Dynamic mechanism design
JEL Classification: D30, D80, D82
Suggested Citation: Suggested Citation
Lukyanov, George and Mengus, Eric, A Tight Sufficient Condition for Recursive Formulation of Dynamic Implementation Problems (June 9, 2016). HEC Paris Research Paper No. ECO/SCD-2016-1151, Available at SSRN: https://ssrn.com/abstract=2795572 or http://dx.doi.org/10.2139/ssrn.2795572
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.