Events

Professor Evan Piermont
Associate Professor in Department of Economics
Royal Holloway University of London

Abstract:

I examine how to incentivize an expert to reveal novel actions, expanding the set from which a decision maker can choose. In particular, I examine the case when the decision maker cannot make ex-ante commitments. I show the outcomes achievable by any (incentive compatible) mechanism are characterized by iterated revelation pro- tocol: a simple dynamic interaction where, in each round, the expert chooses to reveal novel actions and the decision maker shortlists a subset of them; the IRP ends when nothing novel is revealed, and the expert gets to choose from the set of all shortlisted actions. Greedy IRPs—those that maximize the worst-case outcome—delineate the maximal payoff achievable by any efficient mechanism.