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 offer a mechanism that would also be optimal for her exante, that is, before she has obtained her private information.