Affordable Access

Multidimensional Bargains and the Desirability of Ex Post Inefficiency.

Authors

Abstract

In multidimensional bargaining situations where individuals possess relevant private information, say about preferences, allocational efficiency is a central concern. Even if there is no squabbling over distribution--for example, if contingent commitments on allocations can be made before private information is secured--honest revelation comes only by sacrificing efficiency. Indeed, the incentive-compatible, second-best outcomes generally require that some allocations be off the contract curve (ex post inefficient). The potential for recontracting, by ruling out such inefficient allocations and the second-best equilibria they support, would hurt matters further. Copyright 1992 by Kluwer Academic Publishers

There are no comments yet on this publication. Be the first to share your thoughts.

Statistics

Seen <100 times
0 Comments