We provide a simple proof of the equivalence between ex ante and ex post budget balance constraints in Bayesian mechanism design with independent types when participation decisions are made at the interim stage. The result is given an interpretation in terms of efficient allocation of risk

Purpose – Scholars and practitioners have both emphasized the importance of collaboration in an innovation context. They have also largely acknowledged that the definition of common purpose is a major driver of successful collaboration, but surprisingly, researchers have put little effort into...

"Market Design in Online Businesses" characterizes the challenges entrepreneurs may face in creating a well-functioning ecosystem of users, and helps equip entrepreneurs with tools to overcome these obstacles. Key principles include ensuring thickness, alleviating congestion stemming from...

We introduce intention-based social preferences into a Bayesian mechanism design framework. We first show that, under common knowledge of social preferences, any tension between material efficiency, incentive compatibility, and voluntary participation can be resolved. Hence, famous impossibility...