Castro, Luciano I. de; Yannelis, Nicholas C. - 2010 - This Version: December 2010
(efficient) allocations are not incentive compatible is a fundamental fact in information economics, mechanism design and general … equilibrium with asymmetric information. This important result was obtained assuming that the individuals are expected utility … maximizers. Although this assumption is central to Harsanyi's approach to games with incomplete information, it is not the only …