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Nash Implementation with Partially Honest Individuals

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  • Dutta, Bhaskar

    (Department of Economics, University of Warwick)

  • Sen, Arunava

    (Planning Unit, Indian Statistical Institute)

Abstract

We investigate the problem of Nash implementation in the presence of "partially honest" individuals. A partially honest player is one who has a strict preference for revealing the true state over lying when truthtelling does not lead to a worse outcome (according to preferences in the true state) than that which obtains when lying. We show that when there are at least three individuals, the presence of even a single partially honest individual (whose identity is not known to the planner) can lead to a dramatic increase in the class of Nash implementable social choice correspondences. In particular, all social choice correspondences satisfying No Veto Power can be implemented. We also provide necessary and sufficient conditions for implementation in the two-person case when there is exactly one partially honest individual and when both individuals are partially honest. We describe some implications of the characterization conditions for the two-person case. Finally, we extend our three or more individual result to the case where there is an individual with an arbitrary small but strictly positive probability of being partially honest.

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Bibliographic Info

Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 920.

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Date of creation: 2009
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Handle: RePEc:wrk:warwec:920

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  1. Kartik, Navin & Tercieux, Olivier, 2012. "Implementation with evidence," Theoretical Economics, Econometric Society, vol. 7(2), May.
  2. Matthew 0. Jackson, 1989. "Implementation in Undominated Strategies - A Look at Bounded Mechanisms," Discussion Papers 833, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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  4. Maskin, Eric & Sjostrom, Tomas, 2001. "Implementation Theory," Working Papers 5-01-1, Pennsylvania State University, Department of Economics.
  5. Lombardi, Michele & Yoshihara, Naoki, 2011. "Partially-honest Nash implementation: Characterization results," MPRA Paper 28838, University Library of Munich, Germany.
  6. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August.
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Citations

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Cited by:
  1. Lombardi Michele & Yoshihara Naoki, 2010. "A Full Characterization of Nash Implementation with Strategy Space Reduction," Research Memorandum 023, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  2. Lombardi, Michele & Yoshihara, Naoki, 2011. "Partially-honest Nash implementation: Characterization results," CCES Discussion Paper Series 43, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
  3. Lombardi Michele & Yoshihara Naoki, 2012. "Natural implementation with partially hones agents," Research Memorandum 005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  4. Midjord, Rune, 2012. "Full Implementation of Rank Dependent Prizes," DFAEII Working Papers 2012-15, University of the Basque Country - Department of Foundations of Economic Analysis II.
  5. Tymofiy Mylovanov & Andriy Zapechelnyuk, 2010. "Decision Rules for Experts with Opposing Interests," Working Papers 674, Queen Mary, University of London, School of Economics and Finance.
  6. Karagözoğlu, Emin & Keskin, Kerim & Sağlam, Çağrı, 2013. "A minimally altruistic refinement of Nash equilibrium," Mathematical Social Sciences, Elsevier, vol. 66(3), pages 422-430.
  7. Barton L. Lipman & Elchanan Ben-Porath, 2010. "Implementation with Partial Provability," Boston University - Department of Economics - Working Papers Series WP2010-018, Boston University - Department of Economics.
  8. Ahmed Doghmi, 2013. "Nash Implementation in an Allocation Problem with Single-Dipped Preferences," Games, MDPI, Open Access Journal, vol. 4(1), pages 38-49, January.
  9. Lombardi, Michele & Yoshihara, Naoki, 2013. "Partially Honest Nash Implementation: A Full Characterization," Discussion Paper Series 590, Institute of Economic Research, Hitotsubashi University.
  10. Lombardi, Michele & Yoshihara, Naoki, 2013. "Natural Implementation with Partially Honest Agents in Economic Environments," Discussion Paper Series 592, Institute of Economic Research, Hitotsubashi University.
  11. Lombardi, Michele, 2010. "Two-agent Nash implementation with partially-honest agents: Almost Full Characterizations," MPRA Paper 27834, University Library of Munich, Germany.
  12. Ahmed Doghmi & Abderrahmane Ziad, 2013. "Nash Implementation in Private Good Economies with Single-Plateaued Preferences," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201311, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  13. Ahmed Doghmi & Abderrahmane ZIAD, 2012. "On Partial Honesty Nash Implementation," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201201, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  14. Ronen Gradwohl, 2013. "Privacy in Implementation," Discussion Papers 1561, Northwestern University, Center for Mathematical Studies in Economics and Management Science.

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