Showing 1 - 10 of 78
This paper studies robust Bayesian persuasion of a privately informed receiver in which the sender only has limited knowledge about the receiver's private information. The sender is ambiguity averse and has a maxmin expected utility function. We show that when the sender faces full ambiguity,...
Persistent link: https://www.econbiz.de/10012925918
This paper investigates robust information transmission between a sender and a receiver in the Crawford and Sobel (1982) model. We characterize behavior that remains equilibrium behavior independently of the form of a small communication cost. Under standard conditions, we find that an...
Persistent link: https://www.econbiz.de/10014076683
We study the robustness of cheap-talk equilibria to infinitesimal private information of the receiver in a model with a binary state-space and state-independent sender-preferences. We show that the sender-optimal equilibrium is robust if and only if this equilibrium either reveals no information...
Persistent link: https://www.econbiz.de/10014262083
common agency by constructing a pseudo-potential for the game. Robust contracts make explicit how the efficiency of the …
Persistent link: https://www.econbiz.de/10013253715
We assess the strength of the different conditions identified in the literature of robust mechanism design. We focus on three conditions: ex post incentive compatibility, robust monotonicity, and robust measurability. Ex post incentive compatibility has been shown to be necessary for any concept...
Persistent link: https://www.econbiz.de/10008669301
We consider the problem of a seller who faces a privately informed buyer and only knows one moment of the distribution from which values are drawn. In face of this uncertainty, the seller maximizes his worst-case expected profits. We show that a robustness property of the optimal mechanism...
Persistent link: https://www.econbiz.de/10011287052
In a large economy, a first-best provison rule for a public good is robustly implementable with budget balance because no one individual alone can affect the aggregate outcome. First-best outcomes can, however, be blocked by coalitions of agents acting in concert. With a requirement of immunity...
Persistent link: https://www.econbiz.de/10011334017
We study a classic mechanism design problem: How to organize trade between two privately informed parties. We characterize an optimal mechanism under selfish preferences and present experimental evidence that, under such a mechanism, a non-negligible fraction of individuals deviates from the...
Persistent link: https://www.econbiz.de/10010260043
This note considers the problem of a principal (she) who faces a privately informed agent (he) and only knows one moment of the distribution from which his types are drawn. Payoffs are non-linear in the allocation and the principal maximizes her worst-case expected profits. We recast the robust...
Persistent link: https://www.econbiz.de/10011294299
This essay is the introduction for a collection of papers by the two of us on "Robust Mechanism Design" to be published by World Scientific Publishing. The appendix of this essay lists the chapters of the book.The objective of this introductory essay is to provide the reader with an overview of...
Persistent link: https://www.econbiz.de/10013121403