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Robust implementation with peer mechanisms and evidence

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  • Baumann, Leonie

Abstract

A principal must allocate a prize without monetary transfers. She wants to give it to the highest value agent. Agents know their own and their neighbors’ values, as determined by a network. Competing for the prize, agents send messages about themselves (applications) and their neighbors (references). They face a limit to lying, so information is partially verifiable. No incentive-compatible mechanism achieves robust implementation. Assigning the prize as a function of best applications and worst references achieves dominant strategy implementation for all networks and full implementation for the complete network and a class of networks if agents are partially honest.

Suggested Citation

  • Baumann, Leonie, 2026. "Robust implementation with peer mechanisms and evidence," Games and Economic Behavior, Elsevier, vol. 155(C), pages 192-211.
    • Handle: RePEc:eee:gamebe:v:155:y:2026:i:c:p:192-211
    DOI: 10.1016/j.geb.2025.10.007
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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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