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The Limits of Ex-Post Implementation

Author

Listed:
  • Philippe Jehiel

    (PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, UCL - University College of London [London])

  • Moritz Meyer-Ter-Vehn
  • Benny Moldovanu

    (University of Bonn)

  • William B. Zame

    (UCLA - Computer Science Department [Los Angeles] - UCLA - University of California [Los Angeles] - UC - University of California, Division of Geological and Planetary Sciences [Pasadena] - CALTECH - California Institute of Technology)

Abstract

The sensitivity of Bayesian implementation to agents' beliefs about others suggests the use of more robust notions of implementation such as ex post implementation, which requires that each agent's strategy be optimal for every possible realization of the types of other agents. We show that the only deterministic social choice functions that are ex post implementable in generic mechanism design frameworks with multidimensional signals, interdependent valuations, and transferable utilities are constant functions. In other words, deterministic ex post implementation requires that the same alternative must be chosen irrespective of agents' signals. The proof shows that ex post implementability of a nontrivial deterministic social choice function implies that certain rates of information substitution coincide for all agents. This condition amounts to a system of differential equations that are not satisfied by generic valuation functions.

Suggested Citation

  • Philippe Jehiel & Moritz Meyer-Ter-Vehn & Benny Moldovanu & William B. Zame, 2006. "The Limits of Ex-Post Implementation," Post-Print halshs-00754157, HAL.
  • Handle: RePEc:hal:journl:halshs-00754157
    DOI: 10.1111/j.1468-0262.2006.00675.x
    Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/halshs-00754157
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    References listed on IDEAS

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