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Partially-honest Nash implementation: Characterization results

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  • Lombardi, Michele
  • Yoshihara, Naoki

Abstract

This paper studies implementation problems in the wake of a recent new trend of implementation theory which incorporates a non-consequentialist flavor of the evidence from experimental and behavioral economics into the issues. Specifically, following the seminal works by Matsushima (2008) and Dutta and Sen (2009), the paper considers implementation problems with partially honest agents, which presume that there exists at least one individual in the society who concerns herself with not only outcomes but also honest behavior at least in a limited manner. Given this setting, the paper provides a general characterization of Nash implementation with partially-honest individuals. It also provides the necessary and sufficient condition for Nash implementation with partially-honest individuals by mechanisms with some types of strategy-space reductions. As a consequence, it shows that, in contrast to the case of the standard framework, the equivalence between Nash implementation and Nash implementation with strategy space reduction no longer holds.

Suggested Citation

  • Lombardi, Michele & Yoshihara, Naoki, 2011. "Partially-honest Nash implementation: Characterization results," MPRA Paper 28838, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:28838
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    Cited by:

    1. 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.
    2. Dutta, Bhaskar & Sen, Arunava, 2012. "Nash implementation with partially honest individuals," Games and Economic Behavior, Elsevier, vol. 74(1), pages 154-169.
    3. Kartik, Navin & Tercieux, Olivier & Holden, Richard, 2014. "Simple mechanisms and preferences for honesty," Games and Economic Behavior, Elsevier, vol. 83(C), pages 284-290.
    4. Doghmi, Ahmed & Ziad, Abderrahmane, 2015. "Nash implementation in private good economies with single-plateaued preferences and in matching problems," Mathematical Social Sciences, Elsevier, vol. 73(C), pages 32-39.
    5. Ahmed Doghmi & Abderrahmane Ziad, 2013. "Nash Implementation in Private Good Economies with Single-Plateaued Preferences," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201311, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    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. Ville Korpela, 2014. "Bayesian implementation with partially honest individuals," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(3), pages 647-658, October.
    9. Ville Korpela, 2017. "All Deceptions Are Not Alike: Bayesian Mechanism Design with a Social Norm against Lying," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 173(2), pages 376-393, June.
    10. 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.
    11. Doghmi Ahmed & Ziad Abderrahmane, 2013. "On Partially Honest Nash Implementation in Private Good Economies with Restricted Domains: A Sufficient Condition," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 13(1), pages 1-14, September.
    12. Michele Lombardi, 2012. "Nash implementation via simple stochastic mechanisms: strategy space reduction," Review of Economic Design, Springer;Society for Economic Design, vol. 16(4), pages 297-309, December.
    13. Kimya, Mert, 2017. "Nash implementation and tie-breaking rules," Games and Economic Behavior, Elsevier, vol. 102(C), pages 138-146.
    14. Yadav, Sonal, 2016. "Selecting winners with partially honest jurors," Mathematical Social Sciences, Elsevier, vol. 83(C), pages 35-43.
    15. Lombardi, Michele & Yoshihara, Naoki, 2012. "Natural Implementation with Partially Honest Agents," Discussion Paper Series 561, Institute of Economic Research, Hitotsubashi University.
    16. 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.
    17. 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).

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    More about this item

    Keywords

    Nash implementation; canonical-mechanisms; s-mechanisms; self-relevant mechanisms; partial-honesty; permissive results.;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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