The communication requirements of efficient allocations and supporting prices.

We show that any communication finding a value-maximizing allocation in a private-information economy must also discover supporting prices (in general personalized and nonlinear). In particular, to allocate L indivisible items between two agents, a price must be revealed for each of the 2L-1 bundles...

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Bibliographic Details

Published in:	Journal of Economic Theory Vol. 129; no. 1; pp. 192 - 225
Main Authors:	Nisan, Noam, Segal, Ilya
Format:	Article
Published:	Academic Press Inc. July 2006
Subjects:	Prices > Mathematical models Resource allocation > Mathematical models Communication in economics
Online Access:	View this record in EBSCOhost