Informational Size and Incentive Compatibility.

We examine a general equilibrium model with asymmetrically informed agents. The presence of asymmetric information generally presents a conflict between incentive compatibility and Pareto efficiency. We present a notion of informational size and show that the conflict between incentive compatibility...

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Publicado en:Econometrica Vol. 70; no. 6; pp. 2421 - 2454
Autores principales: McLean, Richard, Postlewaite, Andrew
Formato: Artículo
Publicado: Wiley-Blackwell November 2002
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/j.1468-0262.2002.00444.x
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          McLean, Richard
          Postlewaite, Andrew
      su:
        Resource allocation -- Mathematical models
        Information theory in economics
      sug:
        subj:
          Resource allocation -- Mathematical models
          Information theory in economics
      ab: We examine a general equilibrium model with asymmetrically informed agents. The presence of asymmetric information generally presents a conflict between incentive compatibility and Pareto efficiency. We present a notion of informational size and show that the conflict between incentive compatibility and efficiency can be made arbitrarily small if agents are of sufficiently small informational size. Reprinted by permission of the publisher.
      pubtype: Academic Journal
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    language: English
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