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Implementation with renegotiation when preferences and feasible sets are state dependent

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Author Info
Luis Corchón
Matteo Triossi ()

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Abstract

In this paper, we present a model of implementation where infeasible allocations are converted into feasible ones through a process of renegotiation that is represented by a reversion function. We describe the maximal set of Social Choice Correspondences that can be implemented in Nash Equilibrium in a class of reversion functions that punish agents for infeasibilities. This is used to study the implementation of the Walrasian Correspondence and several axiomatic solutions to problems of bargaining and taxation.

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Paper provided by Centro de Economía Aplicada, Universidad de Chile in its series Documentos de Trabajo with number 255.

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Date of creation: 2008
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Handle: RePEc:edj:ceauch:255

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  1. Serrano, Roberto, 1997. "A comment on the Nash program and the theory of implementation," Economics Letters, Elsevier, vol. 55(2), pages 203-208, August. [Downloadable!] (restricted)
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