Mechanism Design by an Informed Principal : The Quasi-Linear Private-Values Case

  title={Mechanism Design by an Informed Principal : The Quasi-Linear Private-Values Case},
  author={Tymofiy Mylovanov and Thomas Tr{\"o}ger},
We show that, in environments with independent private values and transferable utility, a privately informed principal can solve her mechanism selection problem by implementing an allocation that is ex-ante optimal for her. No type of the principal can gain from proposing an alternative mechanism that is incentivefeasible with any belief that puts probability 0 on types that would strictly lose from proposing the alternative. We show that the solution exists in essentially any environment with… CONTINUE READING
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