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Computational criticisms of the revelation principle Export

(2003)

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critique mechanismdesign

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The revelation principle is a cornerstone tool in mechanism design. It states that one can restrict attention, without loss in the designer's objective, to mechanisms in which A) the agents report their types completely in a single step up front, and B) the agents are motivated to be truthful. We show that reasonable constraints on computation and communication can invalidate the revelation principle. Regarding A, we show that by moving to multi-step mechanisms, one can reduce exponential...


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