Information in Mechanism Design
CFDP Revision Date
We survey the recent literature on the role of information in mechanism design. First, we discuss an emerging literature on the role of endogenous payoﬀ and strategic information for the design and the eﬀiciency of the mechanism. We speciﬁcally consider information management in the form of acquisition of new information or disclosure of existing information. Second, we argue that in the presence of endogenous information, the robustness of the mechanism to the type space and higher order beliefs becomes a natural desideratum. We discuss recent approaches to robust mechanism design and robust implementation.
Bergemann, Dirk and Välimäki, Juuso, "Information in Mechanism Design" (2005). Cowles Foundation Discussion Papers. 1819.