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Partial ex-post verifiability and unique implementation of social choice functions

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  • Hitoshi Matsushima

    (University of Tokyo)

Abstract

This study investigates the unique implementation of a social choice function in iterative dominance in the ex-post term. We assume partial ex-post verifiability; that is, after determining an allocation, the central planner can observe partial information about the state as verifiable. We demonstrate a condition of the state space, termed “full detection,” and show that with full detection, any social choice function is uniquely implementable even if the information that can be verified ex-post is very limited. To prove this, we construct a dynamic mechanism according to which each player announces his (or her) private signal, before the other players observe this signal, at an earlier stage, and each player also announces the state at a later stage. In this construction, we can impose several severe restrictions such as boundedness, permission of only tiny transfers off the equilibrium path, and no permission of transfers on the equilibrium path. This study does not assume either expected utility or quasi-linearity.

Suggested Citation

  • Hitoshi Matsushima, 2021. "Partial ex-post verifiability and unique implementation of social choice functions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(3), pages 549-567, April.
    • Handle: RePEc:spr:sochwe:v:56:y:2021:i:3:d:10.1007_s00355-020-01292-w
    DOI: 10.1007/s00355-020-01292-w
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    References listed on IDEAS

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    1. Moore, John & Repullo, Rafael, 1988. "Subgame Perfect Implementation," Econometrica, Econometric Society, vol. 56(5), pages 1191-1220, September.
    2. Palfrey, Thomas R & Srivastava, Sanjay, 1991. "Nash Implementation Using Undominated Strategies," Econometrica, Econometric Society, vol. 59(2), pages 479-501, March.
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    11. Ben-Porath, Elchanan & Lipman, Barton L., 2012. "Implementation with partial provability," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1689-1724.
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    13. Abreu Dilip & Matsushima Hitoshi, 1994. "Exact Implementation," Journal of Economic Theory, Elsevier, vol. 64(1), pages 1-19, October.
    14. Hitoshi Matsushima, 2019. "Implementation without expected utility: ex-post verifiability," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(4), pages 575-585, December.
    15. Hitoshi Matsushima, 2017. "Dynamic Implementation, Verification, and Detection," CARF F-Series CARF-F-416, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    16. Penta, Antonio, 2015. "Robust dynamic implementation," Journal of Economic Theory, Elsevier, vol. 160(C), pages 280-316.
    17. Abreu, Dilip & Matsushima, Hitoshi, 1992. "A Response [Virtual Implementation in Iteratively Undominated Strategies I: Complete Information]," Econometrica, Econometric Society, vol. 60(6), pages 1439-1442, November.
    18. Abreu, Dilip & Matsushima, Hitoshi, 1992. "Virtual Implementation in Iteratively Undominated Strategies: Complete Information," Econometrica, Econometric Society, vol. 60(5), pages 993-1008, September.
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    Cited by:

    1. Matsushima, Hitoshi, 2022. "Epistemological implementation of social choice functions," Games and Economic Behavior, Elsevier, vol. 136(C), pages 389-402.

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