Continuous implementation with small transfers

• Main Authors: CHEN, Yi-Chun, KUNIMOTO, Takashi, SUN, Yifei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Continuous implementation; full implementation; incentive compatibility; robustness; transfers; Economic Theory
• Online Access: https://ink.library.smu.edu.sg/soe_research/2299; https://ink.library.smu.edu.sg/context/soe_research/article/3298/viewcontent/continuous_implementation_Oct_9_2019_.pdf
• Institution: Singapore Management University

The robust mechanism design literature investigates the global robustness of op-timal mechanisms to large changes in the environment. Acknowledging the global robustness as an overly demanding requirement, we propose continuous implementa-tion as a local robustness of optimal mechanisms to small cha...