Mechanism design without quasilinearity
研究了参与者偏好不满足拟线性假设时的机制设计,刻画了占优策略激励相容机制的特征,证明了收入唯一性,并指出最优机制对最差选项收费为零。适用于多种拍卖和公共品问题。
This paper studies a model of mechanism design with transfers where agents' preferences need not be quasilinear. In such a model, (i) we characterize dominant strategy incentive compatible mechanisms using a monotonicity property, (ii) we establish a revenue uniqueness result (for every dominant strategy implementable allocation rule, there is a unique payment rule that can implement it), and (iii) we show that every dominant strategy incentive compatible, individually rational, and revenue‐maximizing mechanism must charge zero payment for the worst alternative (outside option). These results are applicable in a wide variety of problems (single object auction, multiple object auction, public good provision, etc.) under suitable richness of type space. In particular, our results are applicable to two important type spaces: (a) type space containing an arbitrarily small perturbation of quasilinear type space and (b) type space containing all positive income effect preferences.