CIRJE-F-519 "Detail-Free Mechanism Design in Twice Iterative Dominance: Large Economies"
Author Name Matsushima, Hitoshi
Date September 2007
Full Paper PDF file
Remarks Revised Version of CIRJE-CF-282(2004) and CIRJE-F-346(2005); the further revision was subsequently published in Journal of Economic Theory as a regular article.
Abstract

This paper investigates unique implementation in large economies with incomplete information and interdependent values; we degenerate the common knowledge assumptions and assume that a central planner is unaware of the specifications of an environment. With a minor restriction on the class of environments, we demonstrate that there exists a detail-free mechanism that virtually implements competitive allocations with complete information in twice iterative dominance, irrespective of how the environment is specified.