Working Paper
Informed-Principal Problem in Mechanisms with Limited Commitment
Suehyun Kwon
CESifo, Munich, 2019
CESifo Working Paper No. 7513
CESifo, Munich, 2019
CESifo Working Paper No. 7513
![](https://cesifo.org/DocImg/cesifo1_wp7513.jpg?c=1689237103)
This paper studies mechanism design with limited commitment where agents have correlated persistent types over the infinite horizon. The mechanism designer now faces the informed-principal problem in addition to usual issues with i.i.d. types. The paper first shows revelation principle in this context then shows sufficient conditions for obtaining full-commitment solutions with limited commitment.
CESifo Category
Industrial Organisation
Empirical and Theoretical Methods
Industrial Organisation
Empirical and Theoretical Methods