Balanced-Budget Mechanisms with Incomplete Information

  title={Balanced-Budget Mechanisms with Incomplete Information},
  author={Drew Fudenberg and David K. Levine and Eric Maskin},
We examine mechanism design with transferable utility and budget balance, using techniques we developed for the study of repeated games. We show that with independent types, budget balance does not limit the set of social choice functions that can be implemented. With correlated types and three or more players, budget balance is again not a constraint if no… CONTINUE READING