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Robust Efficient Decision Rules
Jernej Copic  1@  
1 : Amse
Aix-Marseille Université - AMU

I define robust efficient decision rules as those that are not Pareto dominated within the set of decision rules that satisfy robust feasibility – incentive compatibility and other constraints. Examples are provided in public and private good environments, where I show non-existence of classically efficient decision rules and then construct robust efficient decision rules. Robust efficiency is characterized as ex ante and interim incentive efficiency when individuals have rich type spaces. Robust efficiency is also characterized by non-existence of a robust common knowledge event, appropriately defined, whereby the individuals would agree to replace a given feasible decision rule with another one. Anonymous decision rules are discussed to facilitate the examples. 


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