The generic possibility of full surplus extraction in models with large type spaces

Arbeitspapier

McAfee and Reny (1992) have given a necessary and sufficient condition for full surplus extraction in naive type spaces with a continuum of payoff types. We generalize their characterization to arbitrary abstract type spaces and to the universal type space and show that in each setting, full surplus extraction is generically possible. We interpret the McAfee-Reny condition as a much stronger version of injectiveness of belief functions and prove genericity by arguments similar to those used to prove the classical embedding theorem for continuous functions. Our results can be used to also establish the genericity of common priors that admit full surplus extraction.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Preprints of the Max Planck Institute for Research on Collective Goods ; No. 2017/2

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: General ; Auctions ; Information, Knowledge, and Uncertainty: General ; Asymmetric and Private Information; Mechanism Design
• Subject: mechanism design ; surplus extraction ; abstract type spaces ; universal type space ; genericity ; correlated values ; correlated information ; strategic continuity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gizatulina, Alia ; Hellwig, Martin
• Event: Veröffentlichung
• (who): Max Planck Institute for Research on Collective Goods
• (where): Bonn
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/162221
• Last update: 10.03.2025, 11:46 AM CET