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Anonymous implementation of the Lindahl correspondence: possibility and impossibility results

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  • Sébastien Rouillon

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Abstract

This paper deals with the existence of anonymous mechanisms to realize the Lindahl correspondence. We consider, in turn, constant and decreasing returns to scale technologies for producing public goods. In each case, we provide a continuous (but not smooth) and weakly balanced mechanism, which meets the two conditions. We then remark that they satisfy a property (see property NC), which is related to, but in fact stronger than anonymity. Finally, we prove that if a mechanism has this property, if it is weakly balanced and implements the Lindahl correspondence, then it cannot be differentiable around Nash equilibria. Copyright Springer-Verlag 2013

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  • Sébastien Rouillon, 2013. "Anonymous implementation of the Lindahl correspondence: possibility and impossibility results," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(4), pages 1179-1203, April.
  • Handle: RePEc:spr:sochwe:v:40:y:2013:i:4:p:1179-1203 DOI: 10.1007/s00355-012-0662-6
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    References listed on IDEAS

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    1. Walker, Mark, 1981. "A Simple Incentive Compatible Scheme for Attaining Lindahl Allocations," Econometrica, Econometric Society, vol. 49(1), pages 65-71, January.
    2. Tian, Guoqiang, 1991. "Implementation of Lindahl allocations with nontotal--nontransitive preferences," Journal of Public Economics, Elsevier, pages 247-259.
    3. Tian, Guoqiang, 1993. "Implementing Lindahl allocations by a withholding mechanism," Journal of Mathematical Economics, Elsevier, vol. 22(2), pages 169-179.
    4. L. Hurwicz, 1979. "Outcome Functions Yielding Walrasian and Lindahl Allocations at Nash Equilibrium Points," Review of Economic Studies, Oxford University Press, vol. 46(2), pages 217-225.
    5. Li, Qi & Nakamura, Shinsuke & Tian, Guoqiang, 1995. "Nash-Implementation of the Lindahl Correspondence with Decreasing Returns to Scale Technologies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 37-52, February.
    6. Kim, Taesung, 1993. "A stable Nash mechanism implementing Lindahl allocations for quasi-linear environments," Journal of Mathematical Economics, Elsevier, vol. 22(4), pages 359-371.
    7. Saijo, Tatsuyoshi & Tatamitani, Yoshikatsu & Yamato, Takehiko, 1996. "Toward Natural Implementation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 949-980, November.
    8. Tian, Guoqiang, 1990. "Completely feasible and continuous implementation of the Lindahl correspondence with a message space of minimal dimension," Journal of Economic Theory, Elsevier, vol. 51(2), pages 443-452, August.
    9. Guoqiang Tian, 1989. "Implementation of the Lindahl Correspondence by a Single-Valued, Feasible, and Continuous Mechanism," Review of Economic Studies, Oxford University Press, vol. 56(4), pages 613-621.
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    Cited by:

    1. Korpela Ville, 2016. "Procedurally Fair Implementation: The Cost of Insisting on Symmetry," Discussion Papers 108, Aboa Centre for Economics.
    2. Hassan Benchekroun & Charles Figuières & Mabel Tidball, 2016. "Implementation of the Lindahl Correspondance via Simple Indirect Mechanisms," AMSE Working Papers 1637, Aix-Marseille School of Economics, Marseille, France.

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