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The foundations of incomplete contracts have been questioned using or extending the subgame perfect implementation approach of Moore and Repullo (1988). We consider the robustness of subgame perfect implementation to the introduction of small amounts of asymmetric information. We show that...
Persistent link: https://www.econbiz.de/10010550055
We develop a measure of compactness based on the distance between voters within the same district relative to the minimum distance achievable, which we coin the relative proximity index. Any compactness measure that satisfies three desirable properties (anonymity of voters, efficient clustering,...
Persistent link: https://www.econbiz.de/10011140019
We consider the robustness of extensive form mechanisms to deviations from common knowledge about the state of nature, which we refer to as information perturbations. First, we show that even under arbitrarily small information perturbations the Moore-Repullo mechanism does not yield (even...
Persistent link: https://www.econbiz.de/10010796326