Information About Other Players in Mechanism Design

Abstract

We study mechanism design settings where the planner has an interest in agents receiving noisy signals about the types of other agents. We show that additional information about other agents can eliminate undesired equilibria, making it helpful to a planner interested in full implementation, designing a mechanism for which every equilibrium outcome is desirable. We provide a sufficient condition under which a social choice function that is not fully implementable when agents have no information about types of other agents can become fully implementable when agents have additional information.