IDEAS home Printed from https://ideas.repec.org/p/kch/wpaper/sdes-2015-1.html
   My bibliography  Save this paper

Natural implementation with partially-honest agents in economic environments with free-disposal

Author

Listed:
  • Michele Lombardi

    (University of Glasgow)

  • Naoki Yoshihara

    (Hitotsubashi University)

Abstract

We study Nash implementation by natural price-quantity mechanisms in pure exchange economies with free-disposal (Saijo et al., 1996, 1999) where agents have weak/strong intrinsic preferences for honesty (Dutta and Sen, 2012). Firstly, the Walrasian rule is shown tobe non-implementable where all agents have weak (but not strong) intrinsic preferences for honesty. Secondly, the class of e¢ cient allocation rules that are implementable is identi…ed provided that at least one agent has strong intrinsic preferences for honesty. Lastly, the Walrasian rule is shown to belong to that class.

Suggested Citation

  • Michele Lombardi & Naoki Yoshihara, 2015. "Natural implementation with partially-honest agents in economic environments with free-disposal," Working Papers SDES-2015-1, Kochi University of Technology, School of Economics and Management, revised Jan 2015.
  • Handle: RePEc:kch:wpaper:sdes-2015-1
    as

    Download full text from publisher

    File URL: http://www.souken.kochi-tech.ac.jp/seido/wp/SDES-2015-1.pdf
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dutta, Bhaskar & Sen, Arunava, 2012. "Nash implementation with partially honest individuals," Games and Economic Behavior, Elsevier, vol. 74(1), pages 154-169.
    2. Matsushima, Hitoshi, 2008. "Role of honesty in full implementation," Journal of Economic Theory, Elsevier, vol. 139(1), pages 353-359, March.
    3. Glazer, Jacob & Rubinstein, Ariel, 1998. "Motives and Implementation: On the Design of Mechanisms to Elicit Opinions," Journal of Economic Theory, Elsevier, vol. 79(2), pages 157-173, April.
    4. Saijo, Tatsuyoshi & Tatamitani, Yoshikatsu & Yamato, Takehiko, 1999. "Characterizing Natural Implementability: The Fair and Walrasian Correspondences," Games and Economic Behavior, Elsevier, vol. 28(2), pages 271-293, August.
    5. Lombardi, Michele & Yoshihara, Naoki, 2012. "Natural Implementation with Partially Honest Agents," Discussion Paper Series 561, Institute of Economic Research, Hitotsubashi University.
    6. Eric Maskin, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 23-38.
    7. Kfir Eliaz, 2002. "Fault Tolerant Implementation," Review of Economic Studies, Oxford University Press, vol. 69(3), pages 589-610.
    8. Kartik, Navin & Tercieux, Olivier & Holden, Richard, 2014. "Simple mechanisms and preferences for honesty," Games and Economic Behavior, Elsevier, vol. 83(C), pages 284-290.
    9. Michele Lombardi & Naoki Yoshihara, 2013. "A full characterization of nash implementation with strategy space reduction," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(1), pages 131-151, September.
    10. Luis Corchón & Carmen Herrero, 2004. "A decent proposal," Spanish Economic Review, Springer;Spanish Economic Association, vol. 6(2), pages 107-125, July.
    11. Matthew O. Jackson, 1992. "Implementation in Undominated Strategies: A Look at Bounded Mechanisms," Review of Economic Studies, Oxford University Press, vol. 59(4), pages 757-775.
    12. Kartik, Navin & Tercieux, Olivier, 2012. "Implementation with evidence," Theoretical Economics, Econometric Society, vol. 7(2), May.
    13. Matsushima, Hitoshi, 2008. "Behavioral aspects of implementation theory," Economics Letters, Elsevier, vol. 100(1), pages 161-164, July.
    14. William Thomson, 1984. "The Manipulability of Resource Allocation Mechanisms," Review of Economic Studies, Oxford University Press, vol. 51(3), pages 447-460.
    15. 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.
    16. Otani, Yoshihiko & Sicilian, Joseph, 1982. "Equilibrium allocations of Walrasian preference games," Journal of Economic Theory, Elsevier, vol. 27(1), pages 47-68, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lombardi, Michele & Yoshihara, Naoki, 2016. "Partially-honest Nash Implementation with Non-connected Honesty Standards," Discussion Paper Series 633, Institute of Economic Research, Hitotsubashi University.
    2. Michele Lombardi & Naoki Yoshihara, 2017. "Natural implementation with semi-responsible agents in pure exchange economies," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(4), pages 1015-1036, November.
    3. Lombardi, M. & Yoshihara, N., 2018. "Treading a fine line: (Im)possibilities for Nash implementation with partially-honest individuals," Games and Economic Behavior, Elsevier, vol. 111(C), pages 203-216.
    4. Velez, Rodrigo A., 2015. "Sincere and sophisticated players in an equal-income market," Journal of Economic Theory, Elsevier, vol. 157(C), pages 1114-1129.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lombardi, Michele & Yoshihara, Naoki, 2013. "Natural implementation with partially honest agents in economic environments," MPRA Paper 48294, University Library of Munich, Germany.
    2. Michele Lombardi & Naoki Yoshihara, 2020. "Partially-honest Nash implementation: a full characterization," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(3), pages 871-904, October.
    3. Michele Lombardi & Naoki Yoshihara, 2017. "Natural implementation with semi-responsible agents in pure exchange economies," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(4), pages 1015-1036, November.
    4. Lombardi, Michele & Yoshihara, Naoki, 2011. "Partially-honest Nash implementation: Characterization results," MPRA Paper 28838, University Library of Munich, Germany.
    5. Lombardi, M. & Yoshihara, N., 2012. "National implementation with partially honest agents," Research Memorandum 005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    6. Lombardi, Michele & Yoshihara, Naoki, 2016. "Partially-honest Nash Implementation with Non-connected Honesty Standards," Discussion Paper Series 633, Institute of Economic Research, Hitotsubashi University.
    7. Michele Lombardi & Naoki Yoshihara, 2017. "Treading a Â…fine line: (Im)possibilities for Nash implementation with partially-honest individuals," Working Papers SDES-2017-14, Kochi University of Technology, School of Economics and Management, revised Aug 2017.
    8. Lombardi, M. & Yoshihara, N., 2018. "Treading a fine line: (Im)possibilities for Nash implementation with partially-honest individuals," Games and Economic Behavior, Elsevier, vol. 111(C), pages 203-216.
    9. Ortner, Juan, 2015. "Direct implementation with minimally honest individuals," Games and Economic Behavior, Elsevier, vol. 90(C), pages 1-16.
    10. Lombardi, Michele & Yoshihara, Naoki, 2012. "Natural Implementation with Partially Honest Agents," Discussion Paper Series 561, Institute of Economic Research, Hitotsubashi University.
    11. Savva, Foivos, 2018. "Strong implementation with partially honest individuals," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 27-34.
    12. Hitoshi Matsushima, 2013. "Process manipulation in unique implementation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 883-893, October.
    13. Laslier, Jean-François & Núñez, Matías & Pimienta, Carlos, 2017. "Reaching consensus through approval bargaining," Games and Economic Behavior, Elsevier, vol. 104(C), pages 241-251.
    14. Michele Lombardi & Naoki Yoshihara, 2013. "A full characterization of nash implementation with strategy space reduction," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(1), pages 131-151, September.
    15. Dutta, Bhaskar & Sen, Arunava, 2012. "Nash implementation with partially honest individuals," Games and Economic Behavior, Elsevier, vol. 74(1), pages 154-169.
    16. Kimya, Mert, 2017. "Nash implementation and tie-breaking rules," Games and Economic Behavior, Elsevier, vol. 102(C), pages 138-146.
    17. Kartik, Navin & Tercieux, Olivier & Holden, Richard, 2014. "Simple mechanisms and preferences for honesty," Games and Economic Behavior, Elsevier, vol. 83(C), pages 284-290.
    18. Midjord, Rune, 2012. "Full Implementation of Rank Dependent Prizes," DFAEII Working Papers 2012-15, University of the Basque Country - Department of Foundations of Economic Analysis II.
    19. Caffera, Marcelo & Dubra, Juan & Figueroa, Nicolás, 2018. "Mechanism design when players’ preferences and information coincide," Mathematical Social Sciences, Elsevier, vol. 91(C), pages 56-61.
    20. Ahmed Doghmi, 2013. "Nash Implementation in an Allocation Problem with Single-Dipped Preferences," Games, MDPI, Open Access Journal, vol. 4(1), pages 1-12, January.

    More about this item

    Keywords

    Natural implementation; Nash equilibrium; exchange economies; intrinsic preferences for honesty;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kch:wpaper:sdes-2015-1. 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: . General contact details of provider: https://edirc.repec.org/data/smkocjp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sachiko Minami (email available below). General contact details of provider: https://edirc.repec.org/data/smkocjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.