Theoretical Economics, Volume 1, Number 3 (October 2006)

Theoretical Economics 1 (2006), 369–393


Ex post implementation in environments with private goods

Sushil Bikhchandani

Abstract


We prove by construction that ex post incentive compatible mechanisms exist in a private goods setting with multi-dimensional signals and interdependent values. The mechanism shares features with the generalized Vickrey auction of one-dimensional signal models. The construction implies that for environments with private goods, informational externalities (i.e., interdependent values) are compatible with ex post equilibrium in the presence of multi-dimensional signals.

Keywords: Ex post incentive compatibility, multi-dimensional information, interdependent values

JEL classification: D44

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