Intermediated Implementation

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Tác giả: Anqi Li, Yiqing Xing

Ngôn ngữ: eng

Ký hiệu phân loại: 331.236 Guaranteed annual wage

Thông tin xuất bản: 2018

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Bộ sưu tập: Metadata

ID: 162331

We examine problems of ``intermediated implementation,'' in which a single principal can only regulate limited aspects of the consumption bundles traded between intermediaries and agents with hidden characteristics. An example is sales, in which retailers offer menus of consumption bundles to customers with hidden tastes, whereas a manufacturer with a potentially different goal from retailers' is limited to regulating sold consumption goods but not retail prices by legal barriers. We study how the principal can implement through intermediaries any social choice rule that is incentive compatible and individually rational for agents. We demonstrate the effectiveness of per-unit fee schedules and distribution regulations, which hinges on whether intermediaries have private or interdependent values. We give further applications to healthcare regulation and income redistribution.
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