A bilateral trading mechanism is evaluated according to the level of expected welfare guaranteed when agents play weakly undominated strategies. We show that, if a finite mechanism guarantees expected welfare W, this is also achieved by the truth-telling strategy profile in a revelation...

In our main article, Miura and Yamashita (2014) ("On the possibility of information transmission"), we have shown in a cheap-talk environment that "assuming full revelation in a common-knowledge environment" implies a very different conclusion for models with slight misspeci fication in the...