Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2012

Font Size:  Small  Medium  Large

Mechanism Design by an Informed Principal: The private values quasilinear case

Tymofiy Mylovanov*, Thomas Troeger

Date: 2012-05-04 9:30 am – 10:00 am
Last modified: 2012-04-17

Abstract


We study the problem of mechanism design by an informed party in private value environments with transferrable utility. We show that, at the interim stage, it is optimal for the proposing party to o ffer a mechanism that would also be optimal for her exante, that is, before she has obtained her private information.