Abstract. We prove-in the standard independent private-values model-that the outcome, in terms of expected probabilities of trade and expected transfers, of any Bayesian mechanism, can also be obtained with a dominant-strategy mechanism.
For the objective of revenue maximization, REF proves that in the independent private values model with linear utility, the outcome in terms of interim allocation rule and interim payment rule of any BIC mechanism, can also be obtained with a DIC mechanism (without any restriction on IR).
BAYESIAN AND DOMINANT STRATEGY IMPLEMENTATION IN THE INDEPENDENT PRIVATE VALUES MODEL
Econometrica
Economics