Optimal Mechanism Design without Money
Alex Gershkov, Benny Moldovanu, Xianwen Shi*
Last modified: 2013-04-15
Abstract
We consider the standard mechanism design environment with linear utility but without monetary transfers. We establish an equivalence between deterministic, dominant strategy incentive compatible mechanisms and generalized median voter schemes, and we use this equivalence to characterize the constrained-efficient optimal mechanism for an utilitarian planner.