SFB 303 Discussion Paper No. A - 275
Author: Yang, Chun-Lei
Title: Unique Implementation of the King Solomon Dilemma by Successive
Elimination of Dominated Strategies
Abstract: The problem of awarding a prize to the person with the highest private
value without any sidepayment is identified as the King Solomon dilemma by
Glazer and Ma . We solve this problem in an incomplete information
setting using the solution concept of successive elimination of weakly
dominated strategies. We also show that the unique outcome is the only
invariant one with respect to different elimination procedures. A class of
unreasonable sequential equilibria yielding some undesired outcomes is
constructed, and the notion of successive elimination is given some further
justification in light of common knowledge theory.
Creation-Date: January 1990
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