Communication Complexity and Mechanism Design

  title={Communication Complexity and Mechanism Design},
  author={Van Zandt},
  • Van Zandt
  • Published 2007
The curse of the Revelation Principle is that it leads us to focus on unrealistic mechanisms in which agents report all private information to the principal, who then makes all decisions centrally. This is not true when communication costs are introduced. Then partial communication of information, sequential back-and-forth conversations, and decentralization of decisions become part of optimal mechanisms. This paper looks at the interplay between the incentive constraints and the communication… CONTINUE READING