Theoretical Economics

Journal of the Econometric Society

Edited by: Federico Echenique • ISSN (e): 1555-7561 • ISSN (print): 1933-6837

Theoretical Economics: Oct, 2018, Volume 13, Issue 3

On mechanisms eliciting ordinal preferences

https://doi.org/10.3982/TE2774
p. 1275-1318

Gabriel Carroll

When is a mechanism designer justified in only asking for ordinal information about preferences? Simple examples show that, even if the planner's goal (expressed by a social choice correspondence, or SCC) depends only on ordinal information, eliciting cardinal information may help with incentives. However, if agents may be uncertain about their own cardinal preferences, then a strong robustness requirement can justify the focus on ordinal mechanisms. Specifically, when agents' preferences over pure outcomes are strict, if a planner is able to implement an SCC (in ex-post equilibrium) using a mechanism that is robust to interdependence of arbitrary form in cardinal preferences, then there must exist such a mechanism that elicits only ordinal preferences. The strictness assumption can be dropped if we further allow the possibility of non-expected-utility preferences.


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