Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2025

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Mechanism Design with Sequential-Move Games: Revelation Principle

Siyang Xiong*

Building: HEC Montréal - Édifice Hélène-Desmarais
Room: HEC
Date: 2025-05-02 4:00 pm – 4:30 pm
Last modified: 2025-04-19

Abstract


Traditionally, mechanism design focuses on simultaneous-move games (e.g., Myerson (1981)). In this paper, we study mechanism design with sequential-move games, and provide two results on revelation principles for general solution concepts (e.g., perfect Bayesian equilibrium, obvious dominance, strong-obvious dominance). First, if a solution concept is additive, implementation in sequential-move games is equivalent to implementation in simultaneous-move games. Second, for any solution concept ρ and any social choice function f, we identify a canonical operator γ^{(ρ,f)}, which is defined on primitives. We prove that, if ρ is monotonic, f can be implemented by a sequential-move game if and only if γ^{(ρ,f)} is achievable, which translates a complicated mechanism design problem into checking some conditions defined on primitives. Most of the existing solution concepts are either additive or monotonic.

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