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Nash Implementation in Production Economies with Unequal Skills: A Characterization

Author

Listed:
  • Naoki Yoshihara

    (School of Management, Kochi University of Technology)

  • Akira Yamada

    (Sapporo University)

Abstract

The present study examines production economies with unequal labor skills, where the planner is ignorant of the set of feasible allocations in advance of production. In particular, we characterize Nash implementation by canonical mechanisms by means of Maskin monotonicity and a new axiom, non-manipulability of unused skills (NUS), where the latter represents a weak independence property with respect to changes in skills. Following these characterizations, we show that some Maskin monotonic social choice correspondences are not implementable if information about individual skills is absent.

Suggested Citation

  • Naoki Yoshihara & Akira Yamada, 2018. "Nash Implementation in Production Economies with Unequal Skills: A Characterization," Working Papers SDES-2018-18, Kochi University of Technology, School of Economics and Management, revised Dec 2018.
  • Handle: RePEc:kch:wpaper:sdes-2018-18
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    References listed on IDEAS

    as
    1. Tian, Guoqiang, 2000. "Incentive Mechanism Design for Production Economies with Both Private and Public Ownerships," Games and Economic Behavior, Elsevier, vol. 33(2), pages 294-320, November.
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    5. Shin, Sungwhee & Suh, Sang-Chul, 1997. "Double Implementation by a Simple Game Form in the Commons Problem," Journal of Economic Theory, Elsevier, vol. 77(1), pages 205-213, November.
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    12. Yoshihara, Naoki & 吉原, 直毅 & Yamada, Akira & 山田, 玲良, 2010. "Nash Implementation in Production Economies with Unequal Skills: A Complete Characterization," CCES Discussion Paper Series 38, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
    13. Akira Yamada & Naoki Yoshihara, 2007. "Triple implementation by sharing mechanisms in production economies with unequal labor skills," International Journal of Game Theory, Springer;Game Theory Society, vol. 36(1), pages 85-106, September.
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    More about this item

    Keywords

    Unequal labor skills; Nash implementation; Canonical mechanisms; Non-manipulability of unused skills;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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