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Getting Dynamic Implementation to Work

Author

Listed:
  • Yi-Chun Chen
  • Richard Holden
  • Takashi Kunimoto
  • Yifei Sun
  • Tom Wilkening

Abstract

We develop a new class of two-stage mechanisms, which fully implement any social choice function under initial rationalizability in complete information environments. We show theoretically that our simultaneous report (SR) mechanisms are robust to small amounts of incomplete information about the state of nature. We also highlight the robustness of the mechanisms to a wide variety of reasoning processes and behavioral assumptions. We show experimentally that an SR mechanism performs well in inducing truth telling in both complete and incomplete information environments and that it can induce efficient investment in a two-sided holdup problem with ex ante investment.

Suggested Citation

  • Yi-Chun Chen & Richard Holden & Takashi Kunimoto & Yifei Sun & Tom Wilkening, 2023. "Getting Dynamic Implementation to Work," Journal of Political Economy, University of Chicago Press, vol. 131(2), pages 285-387.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/721153
    DOI: 10.1086/721153
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