We study mechanism design in dynamic quasilinear environments where private information arrives over time and decisions are made over multiple periods. We make three contributions. First, we provide a necessary condition for incentive compatibility that takes the form of an envelope formula for...

Consider a weather forecaster predicting a probability of rain for the next day. We consider tests that, given a finite sequence of forecast predictions and outcomes, will either pass or fail the forecaster. Sandroni showed that any test which passes a forecaster who knows the distribution of...

The property of an allocation rule to be implementable in dominant strategies by a unique payment scheme is called revenue equivalence. We give a characterization of revenue equivalence based on a graph theoretic interpretation of the incentive compatibility constraints. The characterization...