We study mechanism design with flexible but costly information acquisition. There is a principal and four or more agents, sharing a common prior over the set of payoff-relevant states. The principal proposes a mechanism to the agents who can then acquire information about the state of the world...

Mean-preserving contractions are critical for studying Bayesian models of information design. We introduce the class of bi-pooling policies, and the class of bi-pooling distributions as their induced distributions over posteriors. We show that every extreme point in the set of all...

We study a double auction environment where buyers and sellers have interdependent valuations and multi-unit demand and supply. We propose a new mechanism that satisfies ex post incentive compatibility, individual rationality, feasibility, nonwastefulness, and no budget deficit. Moreover, this...

We consider a dynamic model in which a principal decides what information to release about a product of unknown quality (e.g., a vaccine) to incentivize agents to experiment with the product. Assuming that the agents are long-lived and forward-looking, their incentive to wait and see other...

The canonical Bayesian persuasion setting studies a model where an informed agent, the Sender, can partially share his information with an uninformed agent, the Receiver. The Receiver's utility is a function of the state of nature and the Receiver's action while the Sender's is only a function...

We consider a cheap-talk game a la Crawford and Sobel (1982), where the sender's bias parameter is only “approximately common knowledge” in the sense of (a variant of) Monderer and Samet (1989). Compared to the standard case where the structure of the bias parameter is common knowledge,...