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original papers : Constitutional implementation

Author

Listed:
  • Eyal Winter

    (Department of Economics and the Center for Rationality, The Hebrew University, Jerusalem 91905, Israel)

  • Bezalel Peleg

    (Institute of Mathematics and the Center for Rationality and Interactive Decision Theory, The Hebrew University, Jerusalem 91904, Israel)

Abstract

We consider the problem of implementing a social choice correspondence H in Nash equilibrium when the constitution of the society is given by an effectivity function E. It is assumed that the effectivity function of $ H,E^{H}$, is a sub-correspondence of E. We found necessary and efficient conditions for a game form $\Gamma $ to implement H (in Nash equilibria), and to satisfy, at the same time, that $E^{\Gamma}$, the effectivity function of $\Gamma$, is a sub-correspondence of $E^{H}$ (which guarantees that $\Gamma$ is compatible with E). We also find sufficient conditions for the coincidence of the set of winning coalitions of $E^{\Gamma}$ and $ E^{H}$, and for $E^{\Gamma}=E^{H}$. All our results are sharp as is shown by suitable examples.

Suggested Citation

  • Eyal Winter & Bezalel Peleg, 2002. "original papers : Constitutional implementation," Review of Economic Design, Springer;Society for Economic Design, vol. 7(2), pages 187-204.
  • Handle: RePEc:spr:reecde:v:7:y:2002:i:2:p:187-204
    Note: Received: 15 December 2000 / Accepted: 3 September 2001
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    References listed on IDEAS

    as
    1. Moulin, H. & Peleg, B., 1982. "Cores of effectivity functions and implementation theory," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 115-145, June.
    2. Peleg,Bezalel, 2008. "Game Theoretic Analysis of Voting in Committees," Cambridge Books, Cambridge University Press, number 9780521074650.
    3. Saijo, Tatsuyoshi & Tatamitani, Yoshikatsu & Yamato, Takehiko, 1999. "Characterizing Natural Implementability: The Fair and Walrasian Correspondences," Games and Economic Behavior, Elsevier, vol. 28(2), pages 271-293, August.
    4. Peleg, Bezalel & Peters, Hans & Storcken, Ton, 2002. "Nash consistent representation of constitutions: a reaction to the Gibbard paradox," Mathematical Social Sciences, Elsevier, vol. 43(2), pages 267-287, March.
    5. Abdou, J, 1995. "Nash and Strongly Consistent Two-Player Game Forms," International Journal of Game Theory, Springer;Game Theory Society, vol. 24(4), pages 345-356.
    6. Jackson Matthew O. & Palfrey Thomas R. & Srivastava Sanjay, 1994. "Undominated Nash Implementation in Bounded Mechanisms," Games and Economic Behavior, Elsevier, vol. 6(3), pages 474-501, May.
    7. Yamato, Takehiko, 1992. "On nash implementation of social choice correspondences," Games and Economic Behavior, Elsevier, vol. 4(3), pages 484-492, July.
    8. Danilov, Vladimir, 1992. "Implementation via Nash Equilibria," Econometrica, Econometric Society, vol. 60(1), pages 43-56, January.
    9. Bezalel Peleg, 1997. "Effectivity functions, game forms, games, and rights," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 15(1), pages 67-80.
    10. repec:dau:papers:123456789/13220 is not listed on IDEAS
    11. Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
    12. Dutta, Bhaskar, 1984. "Effectivity Functions and Acceptable Game Forms," Econometrica, Econometric Society, vol. 52(5), pages 1151-1166, September.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Joseph Abdou, 2012. "The structure of unstable power mechanisms," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(2), pages 389-415, June.
    2. Korpela, Ville & Lombardi, Michele & Vartiainen, Hannu, 2020. "Do coalitions matter in designing institutions?," Journal of Economic Theory, Elsevier, vol. 185(C).
    3. Abdou, Joseph, 2010. "A stability index for local effectivity functions," Mathematical Social Sciences, Elsevier, vol. 59(3), pages 306-313, May.
    4. Joseph M. Abdou, 2009. "The Structure of Unstable Power Systems," Post-Print halshs-00392515, HAL.
    5. Doghmi, Ahmed & Ziad, Abderrahmane, 2008. "Nash implementation in exchange economies with single-peaked preferences," Economics Letters, Elsevier, vol. 100(1), pages 157-160, July.
    6. Koray, Semih & Yildiz, Kemal, 2018. "Implementation via rights structures," Journal of Economic Theory, Elsevier, vol. 176(C), pages 479-502.
    7. Benoit, Jean-Pierre & Ok, Efe A., 2006. "Maskin's Theorem with limited veto power," Games and Economic Behavior, Elsevier, vol. 55(2), pages 331-339, May.

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