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Tagged with asymmetric-information mechanism-design
3 questions
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Definition of information structure in an incomplete information game
I try to understand the model in this paper, pages 48-49. (Bergemann, D., & Morris, S. (2019). Information design: A unified perspective. Journal of Economic Literature, 57(1), 44–95. https://doi....
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What does commitment in adverse selection mean?
In this slide deck, p15. it says
"The revelation principle requires that the principal can fully commit to the terms of the contract. If this is not the case, an indirect mechanism, which allows for ...
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Derivation on p.99 of Salanie, The Economics of Taxation (2nd edition)
Starting on p. 98 of Salanie's "The Economic of Taxation" (2nd edition), it explains
To probe it more rigorously, let us define the utility of taxpayer $w$ when he claims to have productivity $w'$:
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