Implementation of Reduced Form Mechanisms: A Simple Approach and a New Characterization

Sergiu Hart and Philip J. Reny



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Abstract
We provide a new characterization of implementability of reduced form mechanisms in terms of straightforward second-order stochastic dominance. In addition, we present a simple proof of Matthews' (1984) conjecture, proved by Border (1991), on implementability.






   


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© Sergiu Hart