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Locally robust implementation and its limits


  • Jehiel, Philippe
  • Meyer-ter-Vehn, Moritz
  • Moldovanu, Benny


We study a notion of locally robust implementation that captures the idea that the planner may know agentsʼ beliefs well, but not perfectly. Locally robust implementation is a weaker concept than ex-post implementation, but we show that no regular allocation function is locally robust implementable in generic settings with quasi-linear utility, interdependent and bilinear values, and multi-dimensional payoff types.

Suggested Citation

  • Jehiel, Philippe & Meyer-ter-Vehn, Moritz & Moldovanu, Benny, 2012. "Locally robust implementation and its limits," Journal of Economic Theory, Elsevier, vol. 147(6), pages 2439-2452.
  • Handle: RePEc:eee:jetheo:v:147:y:2012:i:6:p:2439-2452 DOI: 10.1016/j.jet.2012.05.012

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    References listed on IDEAS

    1. Neeman, Zvika, 2004. "The relevance of private information in mechanism design," Journal of Economic Theory, Elsevier, vol. 117(1), pages 55-77, July.
    2. Jehiel, Philippe & Moldovanu, Benny, 2001. "Efficient Design with Interdependent Valuations," Econometrica, Econometric Society, vol. 69(5), pages 1237-1259, September.
    3. Ledyard, John O., 1978. "Incentive compatibility and incomplete information," Journal of Economic Theory, Elsevier, vol. 18(1), pages 171-189, June.
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    5. Bikhchandani, Sushil, 2006. "Ex post implementation in environments with private goods," Theoretical Economics, Econometric Society, vol. 1(3), pages 369-393, September.
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    7. Johnson, Scott & Pratt, John W & Zeckhauser, Richard J, 1990. "Efficiency Despite Mutually Payoff-Relevant Private Information: The Finite Case," Econometrica, Econometric Society, vol. 58(4), pages 873-900, July.
    8. Jehiel, Philippe & Moldovanu, Benny & Stacchetti, Ennio, 1999. "Multidimensional Mechanism Design for Auctions with Externalities," Journal of Economic Theory, Elsevier, vol. 85(2), pages 258-293, April.
    9. Paul Milgrom & Ilya Segal, 2002. "Envelope Theorems for Arbitrary Choice Sets," Econometrica, Econometric Society, vol. 70(2), pages 583-601, March.
    10. Philippe Jehiel & Moritz Meyer-ter-Vehn & Benny Moldovanu & William R. Zame, 2006. "The Limits of ex post Implementation," Econometrica, Econometric Society, vol. 74(3), pages 585-610, May.
    11. Meyer-ter-Vehn, Moritz & Morris, Stephen, 2011. "The robustness of robust implementation," Journal of Economic Theory, Elsevier, vol. 146(5), pages 2093-2104, September.
    12. Philippe Jehiel & Moritz Meyer-ter-Vehn & Benny Moldovanu, 2008. "Ex-post implementation and preference aggregation via potentials," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(3), pages 469-490, December.
    13. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
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    15. Partha Dasgupta & Eric Maskin, 2000. "Efficient Auctions," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 341-388.
    16. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
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    Cited by:

    1. Dirk Bergemann & Stephen Morris & Satoru Takahashi, 2012. "Efficient Auctions and Interdependent Types," American Economic Review, American Economic Association, vol. 102(3), pages 319-324, May.
    2. Carroll, Gabriel & Meng, Delong, 2016. "Locally robust contracts for moral hazard," Journal of Mathematical Economics, Elsevier, vol. 62(C), pages 36-51.

    More about this item


    Robust implementation; Interdependent values; Multi-dimensional types; Perturbed beliefs;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design


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