Bayesian and Dominant Strategy Implementation in the Independent Private Values Model

Alejandro Manelli and Daniel R. Vincent , Econometrica 78(6) , 1905-1938 , November 2010.

We prove—in the standard independent private-values model—that the outcome, in terms of interim expected probabilities of trade and interim expected transfers, of any Bayesian mechanism can also be obtained with a dominant-strategy mechanism.

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