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Efficient Full Implementation via Transfers: Uniqueness and Sensitivity in Symmetric Environments

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  • Mariann Ollár
  • Antonio Penta

Abstract

We study efficient implementation via transfers in unique rationalizable strategies, in environments that are symmetric in two senses: first, agents display the same total level of preference interdependence; second, types are commonly known to be drawn from distributions with identical (but unknown) means. We characterize the conditions under which full efficient implementation is possible via direct mechanisms, as well as the transfer schemes which achieve it whenever possible. We discuss a further robustness property, robustness to mistaken play, and show that it uniquely selects the transfer scheme which induces an even redistribution of strategic externalities.

Suggested Citation

  • Mariann Ollár & Antonio Penta, 2022. "Efficient Full Implementation via Transfers: Uniqueness and Sensitivity in Symmetric Environments," Working Papers 1311, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:1311
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    References listed on IDEAS

    as
    1. Mariann Ollár & Antonio Penta, 2017. "Full Implementation and Belief Restrictions," American Economic Review, American Economic Association, vol. 107(8), pages 2243-2277, August.
    2. Mariann Ollár & Antonio Penta, 2021. "A Network Solution to Robust Implementation: The Case of Identical but Unknown Distributions," Working Papers 1248, Barcelona School of Economics.
    3. Dirk Bergemann & Stephen Morris, 2012. "Robust Implementation in Direct Mechanisms," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 4, pages 153-194, World Scientific Publishing Co. Pte. Ltd..
    4. Matthew O. Jackson, 1992. "Implementation in Undominated Strategies: A Look at Bounded Mechanisms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(4), pages 757-775.
    5. Eric Maskin, 1999. "Nash Equilibrium and Welfare Optimality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(1), pages 23-38.
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    Cited by:

    1. Chen, Yi-Chun & Kunimoto, Takashi & Sun, Yifei, 2023. "Continuous implementation with payoff knowledge," Journal of Economic Theory, Elsevier, vol. 209(C).
    2. Federico Echenique & Mat'ias N'u~nez, 2022. "Price & Choose," Papers 2212.05650, arXiv.org, revised Apr 2023.

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    More about this item

    Keywords

    efficient implementation; full implementation; interdependent values; loading transfers; equal-externality transfers; Rationalizability; robustness; sensitivity analysis; strategic externalities; symmetric environments; uniqueness;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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