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Approximate implementation in Markovian environments

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  • Renou, Ludovic
  • Tomala, Tristan

Abstract

This paper considers dynamic implementation problems in environments with changing private information (according to Markov processes). A social choice function is approximately implementable if it is correctly implemented an arbitrary large number of times with arbitrary high probability in all (communication) equilibria. We show that if a social choice function is strictly efficient in the set of social choice functions that satisfy an undetectability condition, then it is approximately implementable.

Suggested Citation

  • Renou, Ludovic & Tomala, Tristan, 2015. "Approximate implementation in Markovian environments," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 401-442.
    • Handle: RePEc:eee:jetheo:v:159:y:2015:i:pa:p:401-442
    DOI: 10.1016/j.jet.2015.07.009
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    Cited by:

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    4. Juan I. Block & David K. Levine, 2016. "Codes of conduct, private information and repeated games," International Journal of Game Theory, Springer;Game Theory Society, vol. 45(4), pages 971-984, November.
    5. Āzacis, Helmuts & Vida, Péter, 2019. "Repeated implementation: A practical characterization," Journal of Economic Theory, Elsevier, vol. 180(C), pages 336-367.
    6. Mezzetti, Claudio & Renou, Ludovic, 2017. "Repeated Nash implementation," Theoretical Economics, Econometric Society, vol. 12(1), January.

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    More about this item

    Keywords

    Implementation; Undetectability; Efficiency; Dynamic; Mechanism design; Markov processes;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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