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Title: Mechanism Design and Communication Networks
Authors: Renou, Ludovic
Tomala, Tristan
First Published: 2011
Publisher: Econometric Society
Citation: Theoretical Economics (in press)
Abstract: This paper studies a mechanism design model where the players and the designer are nodes in a communication network. We characterize the communication networks (directed graphs) for which, in any environment (utilities and beliefs), every incentive compatible social choice function is partially implementable. We show that any incentive compatible social choice function is implementable on a given communication network, in all environments with either common independent beliefs and private values or a worst outcome, if and only if the network is strongly connected and weakly 2-connected. A network is strongly connected if for each player, there exists a directed path to the designer. It is weakly 2-connected if each player is either directly connected to the designer or indirectly connected to the designer through two disjoint paths, not necessarily directed. We couple encryption techniques together with appropriate incentives to secure the transmission of each player’s private information to the designer.
ISSN: 1555-7561
eISSN: 1933-6837
Version: Post-print
Status: Peer-reviewed
Type: Article
Rights: © The Authors. Deposited with reference to the publisher's self-archiving policy available on the journal's website.
Description: Theoretical Economics is an open access journal. All articles from this journal are freely available from the journal's website.
Appears in Collections:Published Articles, Dept. of Economics

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