Advanced Search
MyIDEAS: Login

Whose Opinion Counts? Political Processes and the Implementation Problem

Contents:

Author Info

  • Rene Saran

    ()
    (Department of Economics, University of Maastricht, The Netherlands)

  • Norovsambuu Tumennasan

    ()
    (Department of Economics and Business, Aarhus University, Denmark)

Abstract

We augment the mechanism used in Nash implementation with a political process that collects the opinions of a subset of individuals with a xed probability distribution. The outcome is a function of only the collected opinions. We show that the necessary - and sometimes sufficient - condition for implementation by a specic political process can be either weaker or stronger than Maskin monotonicity. We study three such processes: oligarchy, oligarchic democracy and random sampling. Oligarchy collects only the opinions of the oligarchs (a strict subset of the individuals). We present a Nash implementable social choice rule (SCR) that cannot be implemented by any oligarchy. Oligarchic democracy "almost always" collects the opinions of the oligarchs but sometimes, there is a referendum (i.e., everyone's opinions are collected). We show that in economic environments, every Nash implementable SCR can be implemented by oligarchic democracy in which any three individuals act as oligarchs. In random sampling, a sample of opinions are collected randomly. We show that in economic environments, every Nash implementable SCR can be implemented by randomly sampling opinions of 4 individuals. We also provide necessary and sufficient conditions for implementation when the planner has the exibility to choose any political process.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://ftp.econ.au.dk/afn/wp/11/wp11_06.pdf
Download Restriction: no

Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2011-06.

as in new window
Length: 44
Date of creation: 23 May 2011
Date of revision:
Handle: RePEc:aah:aarhec:2011-06

Contact details of provider:
Web page: http://www.econ.au.dk/afn/

Related research

Keywords: Nash Implementation; Political Process; p-Implementation; Direct Democracy; Oligarchy; Oligarchic Democracy; Random Sampling;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. BOCHET, Olivier, 2005. "Nash implementation with lottery mechanisms," CORE Discussion Papers 2005072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Dirk Bergemann & Stephen Morris, 2005. "Ex Post Implementation," Levine's Bibliography 784828000000000018, UCLA Department of Economics.
  3. Maskin, Eric, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Wiley Blackwell, vol. 66(1), pages 23-38, January.
  4. Jackson, Matthew O, 1992. "Implementation in Undominated.Strategies: A Look at Bounded Mechanisms," Review of Economic Studies, Wiley Blackwell, vol. 59(4), pages 757-75, October.
  5. Yamato, Takehiko, 1992. "On nash implementation of social choice correspondences," Games and Economic Behavior, Elsevier, vol. 4(3), pages 484-492, July.
  6. Benoît, Jean-Pierre & Ok, Efe A., 2008. "Nash implementation without no-veto power," Games and Economic Behavior, Elsevier, vol. 64(1), pages 51-67, September.
  7. Maskin, Eric & Sjostrom, Tomas, 2002. "Implementation theory," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 1, chapter 5, pages 237-288 Elsevier.
  8. Danilov, Vladimir, 1992. "Implementation via Nash Equilibria," Econometrica, Econometric Society, vol. 60(1), pages 43-56, January.
  9. Saijo, Tatsuyoshi, 1988. "Strategy Space Reduction in Maskin's Theorem: Sufficient Conditions for Nash Implementation," Econometrica, Econometric Society, vol. 56(3), pages 693-700, May.
  10. Palfrey, Thomas R & Srivastava, Sanjay, 1991. "Nash Implementation Using Undominated Strategies," Econometrica, Econometric Society, vol. 59(2), pages 479-501, March.
  11. Moore, John & Repullo, Rafael, 1990. "Nash Implementation: A Full Characterization," Econometrica, Econometric Society, vol. 58(5), pages 1083-99, September.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:aah:aarhec:2011-06. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.