Template-Type: ReDIF-Paper 1.0
Title: Neutral Optimum in Private-Values Settings
Author-Name: Tymofiy Mylovanov
Author-Email: mylovanov@gmail.com
Author-Name: Thomas Tröger
Author-Email: troeger@uni-mannheim.de

  
Classification-JEL:  C72, D82
Keywords: informed principal, private values, mechanism design, signaling, neologism


Abstract:
We show that in informed-principal settings with generalized private values any 
neutral optimum (Myerson, 1983) is strongly neologism proof (Mylovanov and Tröger, 2012) 
and hence is a strong unconstrained Pareto optimum in the setting of Maskin and Tirole (1990).
Thus, in any setting with a unique strongly neologism-proof solution
this concept is equivalent to neutral optimum. We rely on the unifying concept of neo-optimum that we develop in the companion paper
Mylovanov and Tröger (2026). The main step is to prove that any
neo-optimum is strongly neologism-proof.

Note: 
Length: 32
Creation-Date: 2026-02
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp732
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2025_732