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Secure Implementation Experiments: Do Strategy-proof Mechanisms Really Work?

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  • Cason, Timothy N.

    (Purdue U)

  • Saijo, Tatsuyoshi

    (Osaka U)

  • Sjostrom, Tomas

    (Pennsylvania State U)

  • Yamato, Takehiko

    (Tokyo Institute of Technology)

Abstract

Strategy-proofness, requiring that truth-telling is a dominant strategy, is a standard concept used in social choice theory. Saijo et al. (2003) argue that this concept has serious drawbacks. In particular, announcing one's true preference may not be a unique dominant strategy, and almost all strategy-proof mechanisms have a continuum of Nash equilibria. For only a subset of strategy-proof mechanisms do the set of Nash equilibria and the set of dominant strategy equilibria coincide. For example, this double coincidence occurs in the Groves mechanism when preferences are single-peaked. We report experiments using two strategy-proof mechanisms where one of them has a large number of Nash equilibria, but the other has a unique Nash equilibrium. We found clear differences in the rate of dominant strategy play between the two.

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Bibliographic Info

Paper provided by Pennsylvania State University, Department of Economics in its series Working Papers with number 4-03-1.

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Date of creation: Apr 2003
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Handle: RePEc:ecl:peneco:4-03-1

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References

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Citations

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Cited by:
  1. Bochet, Olivier & Sakai, Toyotaka, 2010. "Secure implementation in allotment economies," Games and Economic Behavior, Elsevier, vol. 68(1), pages 35-49, January.
  2. Tatsuyoshi Saijo & Tomas Sjostrom & Takehiko Yamato, 2003. "Secure Implementation:Strategy-Proof Mechanisms Reconsidered," Discussion papers 03019, Research Institute of Economy, Trade and Industry (RIETI).
  3. Yuji Fujinaka & Takuma Wakayama, 2011. "Secure implementation in Shapley–Scarf housing markets," Economic Theory, Springer, vol. 48(1), pages 147-169, September.
  4. Sjostrom, Tomas & Yamato, Takehiko & Saijo, Tatsuyoshi, 2007. "Secure implementation," Theoretical Economics, Econometric Society, vol. 2(3), September.
  5. Das, Chhandita & Anderson, Christopher M. & Swallow, Stephen K., 2006. "Incentive Compatible Mechanism Design for Discrete Choice Surveys," 2006 Annual meeting, July 23-26, Long Beach, CA 21327, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Yuji Fujinaka & Takuma Wakayama, 2007. "Secure Implementation in Economies with Indivisible Objects and Money," ISER Discussion Paper 0699, Institute of Social and Economic Research, Osaka University.
  7. Katsuhiko Nishizaki, 2013. "An impossibility theorem for secure implementation in discrete public good economies," Economics Bulletin, AccessEcon, vol. 33(1), pages 300-308.
  8. Hideki Mizukami & Takuma Wakayama, 2006. "Full-Truthful Implementation in Nash Equilibria," ISER Discussion Paper 0672, Institute of Social and Economic Research, Osaka University.
  9. Naoko Nishimura & Timothy N. Cason & Tatsuyoshi Saijo & Yoshikazu Ikeda, 2011. "Spite and Reciprocity in Auctions," Games, MDPI, Open Access Journal, vol. 2(3), pages 365-411, September.
  10. Anita Gantner & Wolfgang Höchtl & Rupert Sausgruber, 2011. "The Pivotal Mechanism Revisited: Some Evidence on Group Manipulation," Working Papers 2011-15, Faculty of Economics and Statistics, University of Innsbruck.
  11. Healy, Paul J. & Mathevet, Laurent, 2012. "Designing stable mechanisms for economic environments," Theoretical Economics, Econometric Society, vol. 7(3), September.
  12. Daniel McFadden, 2009. "The human side of mechanism design: a tribute to Leo Hurwicz and Jean-Jacque Laffont," Review of Economic Design, Springer, vol. 13(1), pages 77-100, April.
  13. Tatsuyoshi Saijo & Takehiko Yamato, 2010. "Fundamental impossibility theorems on voluntary participation in the provision of non-excludable public goods," Review of Economic Design, Springer, vol. 14(1), pages 51-73, March.

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