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Treading a Fine Line : (Im)possibilities for Nash Implementation with Partially-honest Individuals

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  • Lombardi, Michele
  • Yoshihara, Naoki
  • 吉原, 直毅

Abstract

This paper investigates the robustness of Dutta and Sen's (2012) Theorem 1 to re-ductions in the strategy space of individuals in relation to preference announcements. Specifically, it considers the Saijo-type's (1988) simplification of Maskin's canonical mechanism, according to which each individual's strategy choice includes her own preference and those of her k ‘neighbor’ individuals. This paper refers to this type of mechanisms as q-mechanisms where q = k + 1. A partially-honest individual is an individual who strictly prefers to tell the truth whenever lying has no effect on her material well-being. When there is at least one partially-honest participant, it offers a necessary condition for Nash implementation by q-mechanisms, called partial-honesty monotonicity, and shows that in an independent domain of preferences that condition is equivalent to Maskin monotonicity. It also shows that the limitations imposed by Maskin monotonicity can be circumvented by a q-mechanism provided that there are at least n - q + 1 partially-honest participants.

Suggested Citation

  • Lombardi, Michele & Yoshihara, Naoki & 吉原, 直毅, 2016. "Treading a Fine Line : (Im)possibilities for Nash Implementation with Partially-honest Individuals," Discussion Paper Series 651, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:651
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    Cited by:

    1. Michele Lombardi & Naoki Yoshihara, 2020. "Partially-honest Nash implementation: a full characterization," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(3), pages 871-904, October.
    2. Matsushima, Hitoshi, 2022. "Epistemological implementation of social choice functions," Games and Economic Behavior, Elsevier, vol. 136(C), pages 389-402.
    3. Lombardi, M. & Yoshihara, N., 2018. "Treading a fine line: (Im)possibilities for Nash implementation with partially-honest individuals," Games and Economic Behavior, Elsevier, vol. 111(C), pages 203-216.
    4. Savva, Foivos, 2018. "Strong implementation with partially honest individuals," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 27-34.
    5. Altun, Ozan Altuğ & Barlo, Mehmet & Dalkıran, Nuh Aygün, 2023. "Implementation with a sympathizer," Mathematical Social Sciences, Elsevier, vol. 121(C), pages 36-49.
    6. Mukherjee, Saptarshi & Muto, Nozomu & Ramaekers, Eve, 2017. "Implementation in undominated strategies with partially honest agents," Games and Economic Behavior, Elsevier, vol. 104(C), pages 613-631.
    7. Hagiwara, Makoto, 2019. "Double implementation without no-veto-power," Mathematical Social Sciences, Elsevier, vol. 101(C), pages 124-130.
    8. Guo, Huiyi & Yannelis, Nicholas C., 2022. "Robust coalitional implementation," Games and Economic Behavior, Elsevier, vol. 132(C), pages 553-575.
    9. Michele Lombardi & Naoki Yoshihara, 2017. "Treading a Â…fine line: (Im)possibilities for Nash implementation with partially-honest individuals," Working Papers SDES-2017-14, Kochi University of Technology, School of Economics and Management, revised Aug 2017.
    10. Hagiwara, Makoto, 2018. "A simple mechanism for double implementation with semi-socially-responsible agents," Economics Letters, Elsevier, vol. 171(C), pages 51-53.

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    More about this item

    Keywords

    Nash implementation; partial-honesty; non-connected honesty standards; independent domain; q-mechanisms;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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