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Nash-implementation of competitive equilibria via a bounded mechanism

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  • Gael Giraud
  • Hubert Stahn

Abstract

We deal with the problem of providing incentives for the implementation of competitive outcomes in a pure-exchange economy with finitely many households. We construct a feasible price-quantity mechanism, which fully implements Walras equilibria via Nash equilibria in fairly general environments. Traders’ preferences need neither to be ordered nor continuous. In addition, the mechanism is such that no pure strategy is weakly dominated, hence is bounded (in the sense of Jackson 1992 ). In particular it makes no use of any integer game. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Gael Giraud & Hubert Stahn, 2013. "Nash-implementation of competitive equilibria via a bounded mechanism," Review of Economic Design, Springer;Society for Economic Design, vol. 17(1), pages 43-62, March.
    • Handle: RePEc:spr:reecde:v:17:y:2013:i:1:p:43-62
    DOI: 10.1007/s10058-012-0138-2
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    Cited by:

    1. Dutta, Bhaskar & Sen, Arunava, 2012. "Nash implementation with partially honest individuals," Games and Economic Behavior, Elsevier, vol. 74(1), pages 154-169.
    2. Dubey, Pradeep & Sondermann, Dieter, 2009. "Perfect competition in an oligopoly (including bilateral monopoly)," Games and Economic Behavior, Elsevier, vol. 65(1), pages 124-141, January.
    3. Gaël Giraud, 2007. "Walrasian Non-tatonnement with Incomplete and Imperfectly Competitive Markets," Post-Print halshs-00155717, HAL.

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    More about this item

    Keywords

    Mechanism design; Strategic boundedness; Weakly dominated strategy ; C72; D50;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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