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Partially-honest Nash implementation: a full characterization

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  • Michele Lombardi

    (Adam Smith Business School, University of Glasgow)

  • Naoki Yoshihara

    (Department of Economics, University of Massachusetts Amherst)

Abstract

A partially-honest individual is a person who follows the maxim, "Do not lie if you do not have to" to serve your material interest. By assuming that the mechanism designer knows that there is at least one partially-honest individual in a society of n≥3 individuals, a social choice rule (SCR) that can be Nash implemented is termed partially-honestly Nash implementable. The paper o¤ers a complete characterization of the n-person SCRs that are partially-honestly Nash implementable. It establishes a condition which is both necessary and su¢ cient for the partially-honest Nash implementation. If all individuals are partially-honest, then all SCRs that satisfy the property of unanimity are partially-honestly Nash implementable. The partially-honest Nash implementation of SCRs is examined in a variety of environments.

Suggested Citation

  • Michele Lombardi & Naoki Yoshihara, 2017. "Partially-honest Nash implementation: a full characterization," Working Papers SDES-2017-15, Kochi University of Technology, School of Economics and Management, revised Aug 2017.
    • Handle: RePEc:kch:wpaper:sdes-2017-15
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    Cited by:

    1. Núñez, Matías & Laslier, Jean-François, 2015. "Bargaining through Approval," Journal of Mathematical Economics, Elsevier, vol. 60(C), pages 63-73.
    2. Guo, Huiyi & Yannelis, Nicholas C., 2022. "Robust coalitional implementation," Games and Economic Behavior, Elsevier, vol. 132(C), pages 553-575.
    3. Zhiwei Liu & Nicholas C. Yannelis, 2022. "Mixed strategy implementation under ambiguity," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(1), pages 167-181, May.
    4. Malachy James Gavan & Antonio Penta, 2022. "Safe Implementation," Working Papers 1363, Barcelona School of Economics.
    5. 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.
    6. Lombardi, Michele & Yoshihara, Naoki, 2013. "Natural implementation with partially honest agents in economic environments," MPRA Paper 48294, University Library of Munich, Germany.
    7. Lombardi, Michele & Yoshihara, Naoki, 2011. "Partially-honest Nash implementation: Characterization results," MPRA Paper 28838, University Library of Munich, Germany.
    8. Mukherjee, Saptarshi & Muto, Nozomu & Ramaekers, Eve, 2017. "Implementation in undominated strategies with partially honest agents," Games and Economic Behavior, Elsevier, vol. 104(C), pages 613-631.
    9. Diss, Mostapha & Doghmi, Ahmed & Tlidi, Abdelmonaim, 2015. "Strategy proofness and unanimity in private good economies with single-peaked preferences," MPRA Paper 75469, University Library of Munich, Germany, revised 06 Dec 2016.
    10. 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.
    11. Hitoshi Matsushima, 2020. "Implementation, Honesty, and Common Knowledge," CARF F-Series CARF-F-500, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    12. Gavan, Malachy James & Penta, Antonio, 2022. "Safe Implementation," TSE Working Papers 22-1369, Toulouse School of Economics (TSE).
    13. Matsushima, Hitoshi, 2022. "Epistemological implementation of social choice functions," Games and Economic Behavior, Elsevier, vol. 136(C), pages 389-402.
    14. Savva, Foivos, 2018. "Strong implementation with partially honest individuals," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 27-34.
    15. Altun, Ozan Altuğ & Barlo, Mehmet & Dalkıran, Nuh Aygün, 2023. "Implementation with a sympathizer," Mathematical Social Sciences, Elsevier, vol. 121(C), pages 36-49.
    16. Zhiwei Liu & Nicholas C. Yannelis, 2021. "Persuasion in an asymmetric information economy: a justification of Wald’s maxmin preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 801-833, October.
    17. Doghmi, Ahmed, 2011. "A Simple Necessary Condition for Partially Honest Nash Implementation," MPRA Paper 67231, University Library of Munich, Germany, revised 14 Oct 2015.
    18. Savva, Foivos, 2021. "Motives and implementation with rights structures," Economics Letters, Elsevier, vol. 204(C).
    19. Hagiwara, Makoto, 2018. "A simple mechanism for double implementation with semi-socially-responsible agents," Economics Letters, Elsevier, vol. 171(C), pages 51-53.

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    More about this item

    Keywords

    Nash implementation; Pure strategy Nash equilibrium; Partial-honesty; Condition μ;
    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

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