The Role of Domain Restrictions in Mechanism Design: Ex Post Incentive Compatibility and Pareto Efficiency

2018 ◽  
Author(s):  
Salvador Barberr ◽  
Dolors Berga-Colom ◽  
Bernardo Moreno
Keyword(s):  
Mechanism Design ◽  
Incentive Compatibility ◽  
Pareto Efficiency ◽  
Ex Post ◽  
Domain Restrictions

The revelation principle and mechanism design

2020 ◽  
pp. 661-719
Author(s):  
David M. Kreps
Keyword(s):  
Mechanism Design ◽  
Adverse Selection ◽  
Optimal Contract ◽  
Gains From Trade ◽  
Revelation Principle ◽  
Ex Post ◽  
The Government ◽  
Role Of The Government

This chapter evaluates a more general attack on optimal contract and mechanism design stressing cases of adverse selection, which makes use of the revelation principle. One should be clear about the uses to which the revelation principle is put. It can be thought of as a statement about how actually to implement contracts. But it may be better to use it with greater circumspection as a tool of analysis for finding the limits of what outcomes can be implemented, without reference to how best to implement a particular outcome. In some contexts of direct revelation, there will be situations ex post where the party in the role of the government knows that it can obtain further gains from trade from one or more of the parties who participated. Meanwhile, in many applications of the revelation principle, the party in the role of mechanism designer must be able to commit credibly to no subsequent (re)negotiation once it learns the types of the parties with which it is dealing.

scholarly journals Ex-post implementation with social preferences

2020 ◽  
Author(s):  
Boaz Zik
Keyword(s):  
Mechanism Design ◽  
Current Literature ◽  
Private Information ◽  
Social Preference ◽  
Social Preferences ◽  
Incentive Compatibility ◽  
Higher Order ◽  
The Other ◽  
Ex Post ◽  
Ex Post Implementation

Abstract The current literature on mechanism design in models with social preferences discusses social-preference-robust mechanisms, i.e., mechanisms that are implementable in any environment with social preferences. The literature also discusses payoff-information-robust mechanisms, i.e., mechanisms that are implementable for any belief and higher-order beliefs of the agents about the payoff types of the other agents. In the present paper, I address the question of whether deterministic mechanisms that are robust in both of these dimensions exist. I consider environments where each agent holds private information about his personal payoff and about the existence and extent of his social preferences. In such environments, a mechanism is robust in both dimensions only if it is ex-post implementable, i.e., only if incentive compatibility holds for every realization of payoff signals and for every realization of social preferences. I show that ex-post implementation of deterministic mechanisms is impossible in such environments; i.e., deterministic mechanisms that are both social-preference-robust and payoff-information-robust do not exist.

Book Reviews

2016 ◽  
Vol 54 (2) ◽  
pp. 589-591
Keyword(s):  
Graduate Students ◽  
Mechanism Design ◽  
Incentive Compatibility ◽  
Dominant Strategy ◽  
University Of Michigan ◽  
Dynamic Mechanism Design ◽  
Temple University ◽  
The University ◽  
Robust Mechanism Design

Dimitrios Diamantaras of Temple University reviews “An Introduction to the Theory of Mechanism Design,” by Tilman Börgers. The Econlit abstract of this book begins: “Presents explanations of classic results in the theory of mechanism design and examines the frontiers of research in mechanism design in a text written for advanced undergraduate and graduate students of economics who have a good understanding of game theory. Discusses screening; examples of Bayesian mechanism design; examples of dominant strategy mechanisms; incentive compatibility; Bayesian mechanism design; dominant strategy mechanisms; nontransferable utility; informational interdependence; robust mechanism design; and dynamic mechanism design. Börgers is Samuel Zell Professor of the Economics of Risk at the University of Michigan.”

Relationships Between Emotional Intelligence, Leadership Style, and School Culture

2017 ◽  
Vol 8 (3) ◽  
pp. 25-43
Author(s):  
Mirta R. Segredo ◽  
Peter J. Cistone ◽  
Thomas G. Reio
Keyword(s):  
Emotional Intelligence ◽  
School Culture ◽  
Transactional Leadership ◽  
Leadership Style ◽  
Hierarchical Regression ◽  
Leadership Strategies ◽  
Ex Post ◽  
Ex Post Facto ◽  
Transformational And Transactional Leadership

Research regarding the association between emotional intelligence, leadership style and organizational culture has been inconclusive. The purpose of this study was to explore these relationships in elementary school settings. A non-experimental ex post facto research design was utilized to investigate four research hypotheses. Fifty-seven principals and 850 teachers within a large urban school district in southeast Florida were surveyed. Hierarchical regression analyses revealed positive associations between school culture and both transformational and transactional leadership, and negative associations between school culture and passive-avoidant leadership. Significant positive associations were found also between school culture and the principals' emotional intelligence after controlling for leadership style. The hierarchical linear regressions revealed significant associations between leadership style and school culture after controlling for school grade as well. The results suggest that emotional intelligence merits consideration in the development of leadership theory. Practical implications include suggestions that principals employ both transformational and transactional leadership strategies, and focus on developing their level of emotional intelligence. The associations between emotional intelligence, transformational leadership, contingent reward and school culture found in this study validate the role of the principal as the leader of school reform.

Financial Reporting and Entrepreneurial Finance: Evidence from Equity Crowdfunding

2021 ◽  
Author(s):  
John Donovan
Keyword(s):  
Financial Reporting ◽  
Positive Association ◽  
Financial Statement ◽  
Entrepreneurial Finance ◽  
Ongoing Debate ◽  
Equity Crowdfunding ◽  
Macroeconomic Uncertainty ◽  
Ex Post ◽  
Insight Into

I study the role of accounting and financial reporting in entrepreneurial finance by examining whether financial statement disclosure increases capital raised through equity crowdfunding. On average, I find a positive association between financial reporting and capital raised, suggesting that accounting reduces information asymmetry with potential investors. Additionally, the importance of financial reporting in equity crowdfunding varies predictably in the cross-section. Specifically, financial reporting is associated with greater capital raised when the firm has longer historical operations, during periods of higher macroeconomic uncertainty, and when complemented by detailed shareholder agreements. Finally, using a mediation analysis, I find evidence that financial reporting is indirectly associated with better ex post performance by increasing the likelihood of raising capital. These results provide insight into the role of financial reporting in entrepreneurial finance and inform the ongoing debate over regulation and disclosure in the equity crowdfunding market. This paper was accepted by Brian Bushee, accounting.

The Role of Business Model Development in the Ex-Post Creation of Online Entrepreneurial Opportunity

2017 ◽  
pp. 818-842
Author(s):  
İpek Koçoğlu ◽  
Ali E. Akgun ◽  
Halit Keskin
Keyword(s):  
Business Model ◽  
Model Development ◽  
Real Life ◽  
Social Infrastructure ◽  
Entrepreneurial Opportunity ◽  
Ex Post ◽  
The Creation ◽  
Online Entrepreneurs ◽  
Business Model Development

This research aims to tap into the largely opaque origins of opportunities in the online context by exploring the role of business model development as a key for the creation and configuration of the mental and social infrastructure necessary for the emergence of online entrepreneurial opportunity. Tracing the sources of online entrepreneurial opportunity reveals that successful online entrepreneurs claim to proactively manage their environment in terms of unfolding actions which result in the enactment and creation of entrepreneurial opportunities. Based on this real life contention and the emerging view of entrepreneurial opportunity, this chapter aims to achieve a deeper understanding on the creation of online opportunities through a quantitative study empirically testing the link between business model development and online entrepreneurial opportunity as creation in order to shed light on how business model generation shapes the way entrepreneurs socially co-create opportunities in the online context.

Service-Oriented Human Computer Interaction and Scripting

2011 ◽  
pp. 1-20 ◽  
Author(s):  
Neil McBride ◽  
Ibrahim Elbeltagi
Keyword(s):  
Human Computer Interaction ◽  
Computer Interface ◽  
Service Encounter ◽  
Script Analysis ◽  
Ex Post ◽  
Service Interaction ◽  
Service Oriented ◽  
Computer Interaction

The emphasis of human-computer interaction (HCI) design on the technology and computer action tends to obscure consideration of the contribution of the computer interface to the service interaction. This chapter suggests that since a majority of commercial information systems support or provide services, the nature and progression of the service encounter should be a key concern of human computer interface designers. The chapter proposes the concept of service-oriented HCI in which HCI design is derived from service design, dialog is driven by customer needs and perceptions, activities that have led up to the service encounter are considered, and the service interaction dialog is aligned with the computer dialog. As part of service-oriented HCI, the chapter illustrates the use of scripting to examine ex-post the role of a computer interaction in a service encounter. It demonstrates that the computer dialog can drive the service interaction in such a way that the quality of the interaction is reduced and customer satisfaction affected. It concludes that the role of the computer system in a service interaction is an area for further research. Furthermore, script analysis may enable the development of human-computer dialogs that meet some of the criteria of service-oriented HCI.

Competence over Control

2020 ◽  
pp. 78-99
Author(s):  
Alexander Thompson
Keyword(s):  
Security Council ◽  
Ad Hoc ◽  
International Level ◽  
Policy Goals ◽  
Ex Post ◽  
Un Security Council ◽  
Ex Ante ◽  
Over Time

The UN Security Council increasingly authorizes weapons inspections to enforce nonproliferation. These are cases of indirect governance, where the Council (the governor) relies on separate bodies (intermediaries) to conduct inspections in states of concern (targets). Despite the risks, the Council often seems willing to forego control in return for gaining the benefits of a competent intermediary that can address its ambitious policy goals and capability deficits. These cases point to important differences between preexisting intermediaries (such as the IAEA and OPCW) and ad hoc intermediaries created for specific tasks (such as the inspection commissions that operated in Iraq). The latter are far more amendable to control, both ex ante and ex post. Over time, we see increasing goal divergence between the governor and intermediaries, driven mainly by the shifting interests of Security Council members, but we also see the competence of intermediaries increase as they gain on-the-ground experience, making control more difficult. The collective nature of the Security Council further complicates control efforts, creating a temptation for individual members to interfere unilaterally with intermediaries and targets. The analysis suggests that the role of sovereign, strategic targets deserves more attention in the study of indirect governance at the international level.

Why do Restatements Decrease in a Clawback Environment? An Investigation into Financial Reporting Executives' Decision-Making during the Restatement Process

2015 ◽  
Vol 90 (6) ◽  
pp. 2515-2536 ◽  
Author(s):  
Jonathan S. Pyzoha
Keyword(s):  
Decision Making ◽  
Executive Compensation ◽  
Financial Reporting ◽  
Financial Statements ◽  
Data Availability ◽  
Archival Studies ◽  
Key Factors ◽  
Ex Post ◽  
Auditor Quality

ABSTRACT Prior archival studies find that firms that voluntarily adopted clawback policies have experienced a reduction in restatements. I experimentally examine this outcome by investigating the influence of two key factors (i.e., executive compensation structure and auditor quality) on financial reporting executives' (hereafter, “executives”) decision-making regarding a proposed restatement that will lead to a clawback of their incentives. I find that executives (i.e., CFOs, controllers, and treasurers) facing a lower quality auditor are less likely to agree with amending prior financial statements when a higher proportion of their pay is incentive-based. However, this tendency is reduced when executives face a higher quality auditor, indicating that higher quality auditors can act as effective monitors. My results identify an ex post unintended consequence of clawback regulation that could at least partially offset the benefits of the ex ante deterrent effects of clawbacks, and that could contribute to findings of less frequent restatements when clawback policies are in place. I discuss potential implications regarding the role of executives during restatement decisions and auditors' risk assessments in a clawback environment. Data Availability: Data are available from the author upon request.

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