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Implementation via rights structures

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  • Koray, Semih
  • Yildiz, Kemal

Abstract

Implementation of socially desirable alternatives can be thought of as a way to design power distribution in a society such that the equilibrium outcomes coincide with the alternatives chosen at each preference profile. In this paper, we introduce a new institutional framework for implementation, which takes power distribution in a society as its point of departure. We use the notion of a rights structure, introduced by Sertel (2001), to formalize the power distribution in a society. We formulate and characterize implementability via rights structures under different specifications, which require having well-defined convergence dynamics and being consistent with farsighted behavior. We identify how implementation via rights structures is related to implementation via mechanisms. In the presence of at least three agents, we find the class of rights structures, implementability via which is equivalent to Nash and strong Nash implementability. We also introduce a strategic counterpart of implementation via rights structures in terms of deviation-constrained mechanisms.

Suggested Citation

  • Koray, Semih & Yildiz, Kemal, 2018. "Implementation via rights structures," Journal of Economic Theory, Elsevier, vol. 176(C), pages 479-502.
    • Handle: RePEc:eee:jetheo:v:176:y:2018:i:c:p:479-502
    DOI: 10.1016/j.jet.2018.04.009
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Saptarshi Mukherjee & Hans Peters, 2022. "Self-implementation of social choice correspondences in Nash equilibrium," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(4), pages 1009-1028, November.
    2. M. Remzi Sanver, 2022. "Well-designed incentive schemes: introduction to the special issue in honor of Semih Koray," Review of Economic Design, Springer;Society for Economic Design, vol. 26(3), pages 247-254, September.
    3. Korpela, Ville & Lombardi, Michele & Vartiainen, Hannu, 2020. "Do coalitions matter in designing institutions?," Journal of Economic Theory, Elsevier, vol. 185(C).
    4. Guo, Huiyi & Yannelis, Nicholas C., 2022. "Robust coalitional implementation," Games and Economic Behavior, Elsevier, vol. 132(C), pages 553-575.
    5. Korpela, Ville & Lombardi, Michele & Vartiainen, Hannu, 2021. "Implementation in largest consistent set via rights structures," Games and Economic Behavior, Elsevier, vol. 128(C), pages 202-212.
    6. Korpela, Ville & Lombardi, Michele & Vartiainen, Hannu, 2019. "Implementation with foresighted agents," MPRA Paper 102496, University Library of Munich, Germany.
    7. Korpela, Ville & Lombardi, Michele, 2019. "Mechanism design with farsighted agents," MPRA Paper 94436, University Library of Munich, Germany.
    8. Michele Lombardi & Foivos Savva & Nikolas Zivanas, 2023. "Implementation in strong core by codes of rights," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 60(3), pages 503-515, April.
    9. Claus-Jochen Haake & Walter Trockel, 2022. "Socio-legal systems and implementation of the Nash solution in Debreu–Hurwicz equilibrium," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 635-649, December.
    10. Gonzalez, Stéphane & Lardon, Aymeric, 2021. "Axiomatic foundations of the core for games in effectiveness form," Mathematical Social Sciences, Elsevier, vol. 114(C), pages 28-38.
    11. Altun, Ozan Altuğ & Barlo, Mehmet & Dalkıran, Nuh Aygün, 2023. "Implementation with a sympathizer," Mathematical Social Sciences, Elsevier, vol. 121(C), pages 36-49.
    12. Mehmet Barlo & Nuh Aygün Dalkıran, 2022. "Computational implementation," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 605-633, December.
    13. Savva, Foivos, 2021. "Motives and implementation with rights structures," Economics Letters, Elsevier, vol. 204(C).

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    More about this item

    Keywords

    Implementation; Rights structures; Nash equilibrium; Monotonicity; Social choice rule;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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