CFDP 1511R

Overcoming Participation Constraints

Author(s): 

Publication Date: May 2005

Revision Date: April 2006

Pages: 51

Abstract: 

This paper shows that linking a sufficiently large number of independent but unrelated social decisions can achieve approximate efficiency. We provide regularity conditions under which a Groves mechanism amended with a veto game implements an efficient outcome with probability arbitrarily close to one, and satisfies interim participation, incentive and resource constraints.

Keywords: 

Linking, Participation Constraints, Groves Mechanisms, Veto Power

JEL Classification Codes:  D61, D82, H41