Efficient Repeated Implementation
AbstractThis paper examines repeated implementation of a social choice function (SCF) with infinitely-lived agents whose preferences are determined randomly in each period. An SCF is repeated-implementable in (Bayesian) Nash equilibrium if there exists a sequence of (possibly history-dependent) mechanisms such that (i) its equilibrium set is non-empty and (ii) every equilibrium outcome corresponds to the desired social choice at every possible history of past play and realizations of uncer- tainty. We first show, with minor qualifications, that in the complete information environment an SCF is repeated-implementable if and only if it is effcient. We then extend this result to the incomplete information setup. In particular, it is shown that in this case efficiency is sufficient to ensure the characterization part of repeated implementation. For the existence part, incentive compatibility is sufficient but not necessary. In the case of interdependent values, existence can also be established with an intuitive condition stipulating that deviations can be detected by at least one agent other than the deviator. Our incomplete information analysis can be extended to incorporate the notion of ex post equilibrium.
Download InfoIf 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.
Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0948.
Date of creation: 13 Nov 2009
Date of revision:
Contact details of provider:
Web page: http://www.econ.cam.ac.uk/index.htm
Repeated implementation; Nash implementation; Bayesian implementation; Ex post implementation; Efficiency; Incentive compatibility; Identifiability;
Other versions of this item:
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-21 (All new papers)
- NEP-CTA-2009-11-21 (Contract Theory & Applications)
- NEP-GTH-2009-11-21 (Game Theory)
- NEP-MIC-2009-11-21 (Microeconomics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ghosh, Sambuddha & Han, Seungjin, 2012.
"Repeated Contracting in Decentralised Markets,"
Microeconomics.ca working papers
seungjin_han-2012-12, Vancouver School of Economics, revised 02 May 2013.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb).
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.