Preprint
Externality Assessments, Welfare Judgments, and Mechanism Design
How agents assess the (in-)tangible externalities that others might impose on them can strongly influence strategic interaction. This study explores mechanism design for agents whose externality assessments and private payoffs, exclusive of externalities, are all subject to asymmetric information; utility is quasi-linear and transferable. An allocation rule will be called strongly Bayesian implementable if it is Bayesian implementable for arbitrary type distributions. Under reasonable assumptions, the following result is established: A Paretian allocation rule is strongly Bayesian implementable through budget-balanced transfers if and only if it maximizes the sum of private payoffs exclusive of externalities. The corresponding mechanism is necessarily externality-robust in that it leaves agents' externality assessments strategically inoperative. The result emphasizes the critical incentive-theoretical role of the welfare judgment inherent to social choice. Strong Bayesian implementation of a welfare judgment inconsistent with externality-ignoring utilitarianism violates budget balance and thus entails incentive costs.
- Sprache
-
Englisch
- Erschienen in
- Klassifikation
-
Wirtschaft
Game Theory and Bargaining Theory: General
Noncooperative Games
Externalities
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Asymmetric and Private Information; Mechanism Design
- Thema
-
(behavioral) mechanism design
externalities
robust implementation
social welfare
bargaining
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Daske, Thomas
- Ereignis
-
Veröffentlichung
- (wer)
-
Technische Universität München
- (wo)
-
München
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Preprint
Beteiligte
- Daske, Thomas
- Technische Universität München
Entstanden
- 2017
Ähnliche Objekte (12)
Payroll Tax and Welfare
Civic capital and support for the welfare state
The welfare effect of flat income tax reform: the case of Bulgaria
Market power, efficiency and welfare performance of banks: evidence from the Ghanaian banking industry
Cyclical and welfare effects of public sector unions in a Real-Business-Cycle model
Welfare gains from the adoption of proportional taxation in a general-equilibrium model with a grey economy: the case of Bulgaria's 2008 flat tax reform
Towards Building Shared Prosperity in Sub-Saharan Africa: How Does the Effect of Economic Integration Compare to Social Equity Policies?
New Imperialism or New Capitalism?
No Shortage of Profit: Semiconductor firms and the differential effects of chip shortages
The Impact of Patent Applications in the Context of the ESG Model at World Level
Aggregation with sequential non-convex public- and private-sector labor suply decisions
Tourism in the Portuguese Rural Areas
Payroll Tax and Welfare
Civic capital and support for the welfare state
The welfare effect of flat income tax reform: the case of Bulgaria
Market power, efficiency and welfare performance of banks: evidence from the Ghanaian banking industry
Cyclical and welfare effects of public sector unions in a Real-Business-Cycle model
Welfare gains from the adoption of proportional taxation in a general-equilibrium model with a grey economy: the case of Bulgaria's 2008 flat tax reform
Towards Building Shared Prosperity in Sub-Saharan Africa: How Does the Effect of Economic Integration Compare to Social Equity Policies?
New Imperialism or New Capitalism?
No Shortage of Profit: Semiconductor firms and the differential effects of chip shortages
The Impact of Patent Applications in the Context of the ESG Model at World Level
Aggregation with sequential non-convex public- and private-sector labor suply decisions
Tourism in the Portuguese Rural Areas
Payroll Tax and Welfare
Civic capital and support for the welfare state
The welfare effect of flat income tax reform: the case of Bulgaria
Market power, efficiency and welfare performance of banks: evidence from the Ghanaian banking industry
Cyclical and welfare effects of public sector unions in a Real-Business-Cycle model
Welfare gains from the adoption of proportional taxation in a general-equilibrium model with a grey economy: the case of Bulgaria's 2008 flat tax reform
Towards Building Shared Prosperity in Sub-Saharan Africa: How Does the Effect of Economic Integration Compare to Social Equity Policies?
New Imperialism or New Capitalism?
No Shortage of Profit: Semiconductor firms and the differential effects of chip shortages
The Impact of Patent Applications in the Context of the ESG Model at World Level
Aggregation with sequential non-convex public- and private-sector labor suply decisions