The genericity of beliefs-determine-preferences models revisited
Barelli [P. Barelli, On the genericity of full surplus extraction in mechanism design, J. Econ. Theory 144 (2009) 1320-1332] defines beliefs-determine-preferences (BDP) models and argues that BDP models are nongeneric in a topological sense. In this note, we point out some difficulties in Barelli[modifier letter apostrophe]s approach. Furthermore, we follow the idea of Heifetz and Neeman [A. Heifetz, Z. Neeman, On the generic (im)possibility of full surplus extraction, Econometrica 74 (2006) 213-233] to propose a more relevant notion of BDP* model. We prove that BDP* models are generic, which is opposite to Barelli[modifier letter apostrophe]s conclusion.
Year of publication: |
2011
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---|---|
Authors: | Chen, Yi-Chun ; Xiong, Siyang |
Published in: |
Journal of Economic Theory. - Elsevier, ISSN 0022-0531. - Vol. 146.2011, 2, p. 751-761
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Publisher: |
Elsevier |
Keywords: | Mechanism design Full surplus extraction Beliefs-determine-preferences priors Common priors |
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