The Becker-deGroot-Marschak mechanism is not necessarily incentive compatible, even for non-random goods. (English) Zbl 1254.91224
Summary: This paper uses results from [E. Karni and Z. Safra, Econometrica 55, 675–685 (1987; Zbl 0613.90001)] and [E. Karni, Int. Econ. Rev. 30, No. 2, 297–305 (1989; Zbl 0674.90006)] to show that the Becker-DeGroot-Marschak mechanism is not always incentive compatible, even when the item to be valued involves no uncertainty, contrary to several recent assertions.
MSC:
| 91B26 | Auctions, bargaining, bidding and selling, and other market models |
| 91B06 | Decision theory |
| 91B16 | Utility theory |
References:
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