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Partially-honest Nash implementation: Characterization results

  • Lombardi, Michele
  • Yoshihara, Naoki

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28838.

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Date of creation: 13 Feb 2011
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Handle: RePEc:pra:mprapa:28838
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  1. Saijo, T. & Tatamitani, Y. & Yamato, T., 1994. "Toward Natural Implementation," ISER Discussion Paper 0340, Institute of Social and Economic Research, Osaka University.
    • 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 949-80, November.
  2. Dirk Bergemann & Stephen Morris & Olivier Tercieux, 2011. "Rationalizable Implementation," Post-Print halshs-00654687, HAL.
  3. Tatamitani, Yoshikatsu, 2001. "Implementation by self-relevant mechanisms," Journal of Mathematical Economics, Elsevier, vol. 35(3), pages 427-444, June.
  4. Matthew O. Jackson, 2001. "A crash course in implementation theory," Social Choice and Welfare, Springer, vol. 18(4), pages 655-708.
  5. Moore, John & Repullo, Rafael, 1990. "Nash Implementation: A Full Characterization," Econometrica, Econometric Society, vol. 58(5), pages 1083-99, September.
  6. Lombardi, Michele & Yoshihara, Naoki, 2011. "Partially-honest Nash implementation: Characterization results," Discussion Paper Series 555, Institute of Economic Research, Hitotsubashi University.
  7. Cabrales, Antonio & Charness, Gary & Corchon, Luis C., 2003. "An experiment on Nash implementation," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 161-193, June.
  8. Lombardi, Michele & Yoshihara, Naoki, 2011. "Partially Honest Nash Implementation: A Full Characterization," MPRA Paper 48234, University Library of Munich, Germany, revised 11 Jul 2013.
  9. Lombardi Michele & Yoshihara Naoki, 2010. "A Full Characterization of Nash Implementation with Strategy Space Reduction," Research Memorandum 023, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  10. Luis Corchón & Carmen Herrero Blanco, 1995. "A Decent Proposal," Working Papers. Serie AD 1995-25, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  11. Tyran, Jean-Robert, 2003. "Behavioral Game Theory. Experiments in Strategic Interaction: Colin F. Camerer, Princeton University Press, Princeton, New Jersey, 2003, p. 550, Price $65.00/[UK pound]42.95, ISBN 0-691-09039-4," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(6), pages 717-720, December.
  12. Hitoshi Matsushima, 2007. "Role of Honesty in Full Implementation," CIRJE F-Series CIRJE-F-518, CIRJE, Faculty of Economics, University of Tokyo.
  13. Danilov, Vladimir, 1992. "Implementation via Nash Equilibria," Econometrica, Econometric Society, vol. 60(1), pages 43-56, January.
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  15. Eliaz, K., 1999. "Fault Tolerant Implementation," Papers 21-99, Tel Aviv.
  16. repec:oup:restud:v:58:y:1991:i:1:p:121-28 is not listed on IDEAS
  17. Tatamitani, Yoshikatsu, 2002. "Implementation by self-relevant mechanisms: applications," Mathematical Social Sciences, Elsevier, vol. 44(3), pages 253-276, December.
  18. repec:oup:restud:v:66:y:1999:i:1:p:23-38 is not listed on IDEAS
  19. Bhaskar Dutta & Arunava Sen & Rajiv Vohra, 1994. "Nash implementation through elementary mechanisms in economic environments," Review of Economic Design, Springer, vol. 1(1), pages 173-203, December.
  20. 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.
  21. Saijo, Tatsuyoshi, 1988. "Strategy Space Reduction in Maskin's Theorem: Sufficient Conditions for Nash Implementation," Econometrica, Econometric Society, vol. 56(3), pages 693-700, May.
  22. Navin Kartik & Olivier Tercieux, 2012. "Implementation with Evidence," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-00754592, HAL.
  23. Sjaak Hurkens & Navin Kartik, 2009. "Would I lie to you? On social preferences and lying aversion," Experimental Economics, Springer, vol. 12(2), pages 180-192, June.
  24. Antonio Cabrales & Roberto Serrano, 2007. "Implementation in Adaptive Better-Response Dynamics," Economics Working Papers we075731, Universidad Carlos III, Departamento de Economía.
  25. Lombardi, Michele & Yoshihara, Naoki, 2012. "Natural Implementation with Partially Honest Agents," Discussion Paper Series 561, Institute of Economic Research, Hitotsubashi University.
  26. Amartya Sen, 1997. "Maximization and the Act of Choice," Econometrica, Econometric Society, vol. 65(4), pages 745-780, July.
  27. Benoît, Jean-Pierre & Ok, Efe A., 2008. "Nash implementation without no-veto power," Games and Economic Behavior, Elsevier, vol. 64(1), pages 51-67, September.
  28. Francesca Busetto & Giulio Codognato, 2009. "Reconsidering two-agent Nash implementation," Social Choice and Welfare, Springer, vol. 32(2), pages 171-179, February.
  29. repec:oup:restud:v:59:y:1992:i:4:p:757-75 is not listed on IDEAS
  30. Elisha A. Pazner & David Schmeidler, 1978. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," The Quarterly Journal of Economics, Oxford University Press, vol. 92(4), pages 671-687.
  31. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
  32. Yamato, Takehiko, 1992. "On nash implementation of social choice correspondences," Games and Economic Behavior, Elsevier, vol. 4(3), pages 484-492, July.
  33. Dutta, Bhaskar & Sen, Arunava, 2009. "Nash Implementation with Partially Honest Individuals," The Warwick Economics Research Paper Series (TWERPS) 920, University of Warwick, Department of Economics.
  34. Koray, Semih & Sertel, Murat, 1991. "A necessary and sufficient condition for two-person Nash implementation : B. Dutta and A. Sen, Review of economic studies 58 (1991), 121-128," European Journal of Political Economy, Elsevier, vol. 7(4), pages 620-620, November.
  35. Hannu Vartiainen, 2007. "Nash implementation and the bargaining problem," Social Choice and Welfare, Springer, vol. 29(2), pages 333-351, September.
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