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Robust coalitional implementation

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  • Guo, Huiyi
  • Yannelis, Nicholas C.

Abstract

The paper introduces coalition structures to study belief-free full implementation. When the mechanism designer does not know which coalitions are admissible, we provide necessary and almost sufficient conditions on when a social choice function is robustly coalitionally implementable, i.e., implementable regardless of the coalition pattern and the belief structure. Robust coalitional implementation is a strong requirement that imposes stringent conditions on implementable social choice functions. However, when the mechanism designer has additional information on which coalitions are admissible, we show that coalitional manipulations may help a mechanism designer to implement social choice functions that are not robustly implementable in the sense of Bergemann and Morris (2009, 2011). As different social choice functions are implementable under different coalition patterns, the paper provides insights on when agents should be allowed to play cooperatively.

Suggested Citation

  • Guo, Huiyi & Yannelis, Nicholas C., 2022. "Robust coalitional implementation," Games and Economic Behavior, Elsevier, vol. 132(C), pages 553-575.
    • Handle: RePEc:eee:gamebe:v:132:y:2022:i:c:p:553-575
    DOI: 10.1016/j.geb.2022.01.022
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    Cited by:

    1. T. Hayashi & R. Jain & V. Korpela & M. Lombardi, 2023. "Behavioral strong implementation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1257-1287, November.

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    More about this item

    Keywords

    Belief-free implementation; Full implementation; Coalition;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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