Process Manipulation in Unique Implementation
We incorporate social influence into implementation theory, and highlight the manner in which an informed agent feels guilty with regard to disobeying an uninformed principalâ€™s wishes. The degree of this feeling depends on the agentâ€™s expectation of othersâ€™ behavioral modes. We demonstrate a method of process manipulation, through which the principal employs psychological tactics for incentivizing agents to announce information in keeping with his/her wishes. We indicate that with a version of incentive compatibility, the principal can implement any alternative that he/she wishes as the unique Nash equilibrium without employing any contractual devices. Each agentâ€™s psychological cost would be negligible.
|Date of creation:||Dec 2008|
|Date of revision:||Jul 2012|
|Contact details of provider:|| Postal: |
Web page: http://www.carf.e.u-tokyo.ac.jp/english/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Matsushima, Hitoshi, 2008.
"Role of honesty in full implementation,"
Journal of Economic Theory,
Elsevier, vol. 139(1), pages 353-359, March.
- Eliaz, K., 1999.
"Fault Tolerant Implementation,"
21-99, Tel Aviv.
- Martin J. Osborne & Ariel Rubinstein, 1994.
"A Course in Game Theory,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262650401, June.
- Kartik, Navin & Tercieux, Olivier, 2012. "Implementation with evidence," Theoretical Economics, Econometric Society, vol. 7(2), May.
- Lombardi, Michele & Yoshihara, Naoki, 2012.
"Natural Implementation with Partially Honest Agents,"
Discussion Paper Series
561, Institute of Economic Research, Hitotsubashi University.
- Lombardi Michele & Yoshihara Naoki, 2012. "Natural implementation with partially hones agents," Research Memorandum 005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Eric Maskin, 1998.
"Nash Equilibrium and Welfare Optimality,"
Harvard Institute of Economic Research Working Papers
1829, Harvard - Institute of Economic Research.
- Dutta, Bhaskar & Sen, Arunava, 2009.
"Nash Implementation with Partially Honest Individuals,"
The Warwick Economics Research Paper Series (TWERPS)
920, University of Warwick, Department of Economics.
- Dutta, Bhaskar & Sen, Arunava, 2012. "Nash implementation with partially honest individuals," Games and Economic Behavior, Elsevier, vol. 74(1), pages 154-169.
- Matsushima, Hitoshi, 2008.
"Behavioral aspects of implementation theory,"
Elsevier, vol. 100(1), pages 161-164, July.
- Kfir Eliaz, 2002. "Fault Tolerant Implementation," Review of Economic Studies, Oxford University Press, vol. 69(3), pages 589-610.
- Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-77, October.
- Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
- Abreu, Dilip & Matsushima, Hitoshi, 1992. "Virtual Implementation in Iteratively Undominated Strategies: Complete Information," Econometrica, Econometric Society, vol. 60(5), pages 993-1008, September.
- Akerlof, George A & Dickens, William T, 1982. "The Economic Consequences of Cognitive Dissonance," American Economic Review, American Economic Association, vol. 72(3), pages 307-19, June.
When requesting a correction, please mention this item's handle: RePEc:cfi:fseres:cf301. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.