IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v1y2012i1p1-2310.1186-2193-2409-1-5.html
   My bibliography  Save this article

Nonmyopia and incentives in the piecewise linearized MDP procedures with variable step-sizes

Author

Listed:
  • Kimitoshi Sato

Abstract

The paper formulates a piecewise linearized version of the procedure developed by Sato (1983) and analyzes its properties. In so doing, Fujigaki’s (1981) private goods economy is extended to involve a public good; and the intertemporal game of Champsaur and Laroque is piecewise localized by dividing the time interval in their game and by using variable step-sizes to formalize the piecewise linearized procedure, called λMDP Procedure, that can possess similar desirable properties shared by continuous-time procedures. Under Nonmyopia assumption, each player’s best reply strategy at any discrete date is to reveal his/her anticipated marginal rate of substitution for a public good at the end of a current time interval of the λMDP Procedure. JEL Classification: H41. Copyright Sato; licensee Springer 2012

Suggested Citation

  • Kimitoshi Sato, 2012. "Nonmyopia and incentives in the piecewise linearized MDP procedures with variable step-sizes," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-23, December.
    • Handle: RePEc:spr:jecstr:v:1:y:2012:i:1:p:1-23:10.1186/2193-2409-1-5
    DOI: 10.1186/2193-2409-1-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1186/2193-2409-1-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1186/2193-2409-1-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Matthews, Steven A, 1982. "Local Simple Games in Public Choice Mechanisms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(3), pages 623-645, October.
    2. Mikiro Otsuki, 1978. "Discrete Procedures of Economic Planning: A Unified View from Feasible Direction Methods," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 45(1), pages 77-84.
    3. Champsaur, Paul & Rochet, Jean-Charles, 1983. "On planning procedures which are locally strategy proof," Journal of Economic Theory, Elsevier, vol. 30(2), pages 353-369, August.
    4. Paul Champsaur, 1976. "Neutrality of Planning Procedures in an Economy with Public Goods," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 293-299.
    5. John Roberts, 1979. "Incentives in Planning Procedures for the Provision of Public Goods," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 46(2), pages 283-292.
    6. Chander, Parkash, 1993. "Dynamic Procedures and Incentives in Public Good Economies," Econometrica, Econometric Society, vol. 61(6), pages 1341-1354, November.
    7. E. Malinvaud, 1972. "Prices for Individual Consumption, Quantity Indicators for Collective Consumption," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 39(4), pages 385-405.
    8. Jean-Jacques Laffont & Eric Maskin, 1983. "A Characterization of Strongly Locally Incentive Compatible Planning Procedures with Public Goods," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(1), pages 171-186.
    9. Champsaur, Paul & Laroque, Guy, 1982. "Strategic Behavior in Decentralized Planning Procedures," Econometrica, Econometric Society, vol. 50(2), pages 325-344, March.
    10. Spagat, M., 1995. "Leaving some stones unturned: A reassessment of iterative planning theory," Journal of Public Economics, Elsevier, vol. 58(1), pages 85-105, September.
    11. Peter J. Hammond, 1979. "Symposium on Incentive Compatibility: Introduction," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 46(2), pages 181-184.
    12. E. Malinvaud, 1967. "Decentralized Procedures for Planning," International Economic Association Series, in: E. Malinvaud & M. O. L. Bacharach (ed.), Activity Analysis in the Theory of Growth and Planning, chapter 0, pages 170-208, Palgrave Macmillan.
    13. Laffont, Jean-Jacques & Saint-Pierre, Patrick, 1979. "Planning with Externalities," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(3), pages 617-634, October.
    14. Hervé Moulin, 1984. "Comportement stratégique et communication conflictuelle : le cas non coopératif," Revue Économique, Programme National Persée, vol. 35(1), pages 109-146.
    15. Jerry Green & Françoise Schoumaker, 1980. "Incentives in Discrete-time MDP Processes with Flexible Step-size," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(3), pages 557-565.
    16. Yoshifumi Fujigaki & Kimitoshi Sato, 1981. "Incentives in the Generalized MDP Procedure for the Provision of Public Goods," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(3), pages 473-485.
    17. de Trenqualye, Pierre, 1992. "Dynamic implementation in two-agent economies," Economics Letters, Elsevier, vol. 39(3), pages 305-308, July.
    18. Guy Laroque & Jean-Charles Rochet, 1983. "Myopic Versus Intertemporal Manipulation in Decentralized Planning Procedures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(1), pages 187-195.
    19. Truchon, Michel, 1984. "Nonmyopic Strategic Behavior in the MDP Planning Procedure," Econometrica, Econometric Society, vol. 52(5), pages 1179-1189, September.
    20. CHAMPSAUR, Paul, 1976. "Neutrality of planning procedures in an economy with public goods," LIDAM Reprints CORE 264, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    21. E. Malinvaud, 1971. "A Planning Approach to the Public Good Problem," Palgrave Macmillan Books, in: Peter Bohm & Allen V. Kneese (ed.), The Economics of Environment, pages 77-93, Palgrave Macmillan.
    22. C. Henry & A. Zylberberg, 1978. "Planning Algorithms to deal with Increasing Returns," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 45(1), pages 67-75.
    23. Andreu Mas-Colell, 1980. "Efficiency and Decentralization in the Pure Theory of Public Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 625-641.
    24. von dem Hagen, Oskar, 1991. "Strategic behaviour in the MDP procedure," European Economic Review, Elsevier, vol. 35(1), pages 121-138, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kazuhiko Nishimura, 2013. "Quality Adjustment in Non-spanning Markets with Variety Aversion," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-18, December.
    2. Kimitoshi Sato, 2016. "The MDP Procedure for public goods and local strategy proofness," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-31, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kimitoshi Sato, 2016. "The MDP Procedure for public goods and local strategy proofness," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-31, December.
    2. Spagat, M., 1995. "Leaving some stones unturned: A reassessment of iterative planning theory," Journal of Public Economics, Elsevier, vol. 58(1), pages 85-105, September.
    3. Ledyard, John O., "undated". "Public Goods: A Survey of Experimental Research," Working Papers 861, California Institute of Technology, Division of the Humanities and Social Sciences.
    4. Monique Florenzano, 2009. "Walras-Lindahl-Wicksell: What equilibrium concept for public goods provision," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00531434, HAL.
    5. de Trenqualye, Pierre, 1995. "Incentive compatibility without compensation," Economics Letters, Elsevier, vol. 47(1), pages 35-39, January.
    6. Helmuth Cremer & Jacques Crémer, 1993. "L'apport des théories économiques récentes à la planification indicative," Revue Économique, Programme National Persée, vol. 44(1), pages 57-74.
    7. Chakravorti, Bhaskar, 1995. "Dynamic public goods provision with coalitional manipulation," Journal of Public Economics, Elsevier, vol. 56(1), pages 143-161, January.
    8. Edna Tusak Loehman & Richard Kiser & Stephen J. Rassenti, 2014. "Cost Share Adjustment Processes for Cooperative Group Decisions About Shared Goods: A Design Approach," Group Decision and Negotiation, Springer, vol. 23(5), pages 1085-1126, September.
    9. Susan Cohen, 1986. "Truth-telling, dominant strategies, and iterative Groves mechanisms," Public Choice, Springer, vol. 51(3), pages 333-343, January.
    10. E. Malinvaud, 2004. "Some Ethical and Methodological Convictions," Chapters, in: Michael Szenberg & Lall Ramrattan (ed.), Reflections of Eminent Economists, chapter 16, Edward Elgar Publishing.
    11. JOHN McMILLAN, 1979. "The Free‐Rider Problem: A Survey," The Economic Record, The Economic Society of Australia, vol. 55(2), pages 95-107, June.
    12. Jacques H. Drèze & Charles Figuières & Jean Hindriks, 2006. "Voluntary Matching Grants Can Forestall Social Dumping," CESifo Working Paper Series 1867, CESifo.
    13. Jacques H. Drèze & Charles Figuieres & Jean Hindriks, 2007. "Can Federal Grants Mitigate Social Competition?," CESifo Economic Studies, CESifo Group, vol. 53(4), pages 596-617, December.
    14. Peter J. Hammond & Antonio Villar, 1998. "Efficiency with Non‐Convexities: Extending the “Scandinavian Consensus” Approaches," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 11-32, March.
    15. Mongin, Philippe, 2019. "Interview of Peter J. Hammond," CRETA Online Discussion Paper Series 50, Centre for Research in Economic Theory and its Applications CRETA.
    16. Boyer, Marcel & Dagenais, Marcel G. & Salvas-Bronsard, Lise, 1989. "L’empreinte de MalinvaudMélanges économiques. Essais en l’honneur de Edmond Malinvaud, Economica, Paris, 1988 (1092 pages)," L'Actualité Economique, Société Canadienne de Science Economique, vol. 65(2), pages 263-296, juin.
    17. Chander, Parkash & Tulkens, Henry, 2006. "Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion," Coalition Theory Network Working Papers 12170, Fondazione Eni Enrico Mattei (FEEM).
    18. Monique Florenzano, 2009. "Walras-Lindahl-Wicksell: What equilibrium concept for public goods provision ? I - The convex case," Post-Print halshs-00367867, HAL.
    19. Monique Florenzano, 2010. "Government and the provision of public goods:from equilibrium models to mechanismdesign," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 17(4), pages 1047-1077.
    20. Xavier Freixas, 1981. "Une analyse coût-avantage des mécanismes d'allocation : l'approche prix-quantités," Revue Économique, Programme National Persée, vol. 32(6), pages 1074-1086.

    More about this item

    Keywords

    incentives; nonmyopia; piecewise linearized procedures; public goods; variable step-sizes;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecstr:v:1:y:2012:i:1:p:1-23:10.1186/2193-2409-1-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.