April 20, 2016
Asymmetric Information and Implementation (Part 2)
I will briefly repeat Hurwicz '72 proof [slides 23-26] (With hidden info, truth telling is not achievable, and no efficient, individually rational, and incentive compatible privacy-preserving mechanism exists). We will then move to slide #31, discuss Maskin's implementation theorem, and examples of illustrative games with hidden information. Lastly, we will cover Myerson's examples of production with moral hazard, and the attendant trade-offs.
