Implementation of Reduced Form Mechanisms: A Simple Approach and a New Characterization

Authors: 
Sergiu Hart and Philip J. Reny
Abstract: 

We provide a new characterization of implementability of reduced form mechanisms in terms of straightforward second-order stochastic dominance. In addition, we present a simple proof of Matthews' (1984) conjecture, proved by Border (1991), on implementability.

Date: 
December, 2011
Number: 
594