This paper considers mechanism design problems in environments with ambiguity‐sensitive individuals. The novel idea is to introduce ambiguity in mechanisms so as to exploit the ambiguity sensitivity of individuals. Deliberate engineering of ambiguity, through ambiguous mediated communication,...

Agents' valuations are interdependent if they depend on the signals, or types, of all agents. Under the implicit assumption that agents cannot observe their outcome-decision payoffs, previous literature has shown that with interdependent valuations and independent signals, efficient design is...