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Undominated Nash Implementation in Bounded Mechanisms

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  • Jackson Matthew O.
  • Palfrey Thomas R.
  • Srivastava Sanjay

Abstract

We study social choice correspondences which can be implemented in undominated Nash equilibrium by bounded mechanisms. (An undominated Nash equilibrium is a Nash equilibrium in which no agent uses a weakly dominated strategy. A mechanism is bounded if every dominated strategy is dominated by an undominated strategy). We provide necessary conditions and sufficient conditions for such implementation. Our conditions are satisfied in virtually all "economic" settings, and are also satisfied by many interesting correspondences identified in the social choice literature. For economic settings, we provide a particularly simple implementing mechanism in which the undominated Nash equilibrium outcomes coincide with those obtained by iterated elimination of weakly dominated strategies.
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(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jackson Matthew O. & Palfrey Thomas R. & Srivastava Sanjay, 1994. "Undominated Nash Implementation in Bounded Mechanisms," Games and Economic Behavior, Elsevier, vol. 6(3), pages 474-501, May.
  • Handle: RePEc:eee:gamebe:v:6:y:1994:i:3:p:474-501
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    References listed on IDEAS

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    1. Palfrey, Thomas R & Srivastava, Sanjay, 1989. "Implementation with Incomplete Information in Exchange Economies," Econometrica, Econometric Society, vol. 57(1), pages 115-134, January.
    2. Moore, John & Repullo, Rafael, 1988. "Subgame Perfect Implementation," Econometrica, Econometric Society, vol. 56(5), pages 1191-1220, September.
    3. Thomas R. Palfrey & Sanjay Srivastava, 1987. "On Bayesian Implementable Allocations," Review of Economic Studies, Oxford University Press, vol. 54(2), pages 193-208.
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