COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
AT YALE UNIVERSITY

Box 208281
New Haven, CT 06520-8281

COWLES FOUNDATION DISCUSSION PAPER NO. 1511R

Overcoming Participation Constraints

Hanming Fang and Peter Norman

Revised April 2006

This paper shows that linking a sufficiently large number of independent but unrelated social decisions can achieve approximate efficiency. We provide regularity conditions under which a Groves mechanism amended with a veto game implements an efficient outcome with probability arbitrarily close to one, and satisfies interim participation, incentive and resource constraints.

Keywords: Linking, Participation Constraints, Groves Mechanisms, Veto Power

JEL Classification Numbers: D61, D82, H41