Sequential communication with ex post participation.
Summary
This paper examines the implementation of Bayesian allocation rules that satisfy the non-negative ex-post payoff constraint for a player in a two-player model with two-way asymmetric information. He shows that, under general conditions, these allocations can be implemented by a sequential mechanism in which the players communicate their information one after the other. Moreover, when the allocation rules are negotiated ex ante, the order is important: the player who communicates first must have bargaining power or unbounded ex post payoffs.
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