Multidimensional bargaining and posted prices

A seller and a buyer bargain over the quantities and prices of multiple goods. Both agents have private information about their preferences. Utility is quasilinear in money. We show that a deterministic mechanism satisfies (i) dominant-strategy incentive compatibility, (ii) ex-post individual ration...

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Detalles Bibliográficos
Autores: Hagen, Martin, Hernando-Veciana, Ángel
Tipo de recurso: artículo
Fecha de publicación:2021
País:España
Institución:CUNEF Universidad
Repositorio:OpenCUNEF
Idioma:inglés
OAI Identifier:oai:open.cunef.edu:20.500.14861/36
Acceso en línea:https://hdl.handle.net/20.500.14861/36
Access Level:acceso abierto
Palabra clave:mechanism design
bilateral trade
multidimensional private information
posted prices
dominant strategies
collusion-proofness
Descripción
Sumario:A seller and a buyer bargain over the quantities and prices of multiple goods. Both agents have private information about their preferences. Utility is quasilinear in money. We show that a deterministic mechanism satisfies (i) dominant-strategy incentive compatibility, (ii) ex-post individual rationality and (iii) ex-post budget balance if and only if it is a posted-price mechanism. A similar, more general result holds if (iii) is replaced by ex-post collusion-proofness and a no-free lunch condition. We provide a unified proof of both findings via the property of non-bossiness.