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A Simple Necessary Condition for Partially Honest Nash Implementation

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  • Doghmi, Ahmed

Abstract

This paper belongs to the recent literature which explores the consequence(s) of allowing some player(s) to be minimally honest in the standard Nash implementation. In this literature, Dutta and Sen(2012) give sufficient conditions for the implementation of social choice correspondences in Nash equilibria provided at least one individual is partially honest, that is Maskin Monotonicity is no longer required. They did not present any necessary condition. Thus, in this paper, we seek to fill the gap by deriving a simple necessary condition called, Partial-Equivalency. This condition allows us to lift the silence on the implementability of several social choice correspondences where Dutta and Sen's theorem (2012) does not give any answer. We apply our result to domains of private good economies with single-peaked preferences and we give examples of solutions of the problem of fair division that are not partially honest Nash implementable. We introduce the mild property of citizen sovereignty and we prove that Partial-Equivalency is not only necessary, but becomes also sufficient. Also, we extend our result to partially honest environment with incomplete information.

Suggested Citation

  • Doghmi, Ahmed, 2011. "A Simple Necessary Condition for Partially Honest Nash Implementation," MPRA Paper 67231, University Library of Munich, Germany, revised 14 Oct 2015.
  • Handle: RePEc:pra:mprapa:67231
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    References listed on IDEAS

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    1. Dutta, Bhaskar & Sen, Arunava, 2012. "Nash implementation with partially honest individuals," Games and Economic Behavior, Elsevier, vol. 74(1), pages 154-169.
    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. Matsushima, Hitoshi, 2008. "Role of honesty in full implementation," Journal of Economic Theory, Elsevier, vol. 139(1), pages 353-359, March.
    4. Eric Maskin, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 23-38.
    5. Kartik, Navin & Tercieux, Olivier & Holden, Richard, 2014. "Simple mechanisms and preferences for honesty," Games and Economic Behavior, Elsevier, vol. 83(C), pages 284-290.
    6. Doghmi, Ahmed & Ziad, Abderrahmane, 2008. "Reexamination of Maskin's Theorem on Nash implementability," Economics Letters, Elsevier, vol. 100(1), pages 150-152, July.
    7. , & ,, 2012. "Implementation with evidence," Theoretical Economics, Econometric Society, vol. 7(2), May.
    8. Matsushima, Hitoshi, 2008. "Behavioral aspects of implementation theory," Economics Letters, Elsevier, vol. 100(1), pages 161-164, July.
    9. 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.
    10. 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.
    11. 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.
    12. Doghmi, Ahmed & Ziad, Abderrahmane, 2008. "Nash implementation in exchange economies with single-peaked preferences," Economics Letters, Elsevier, vol. 100(1), pages 157-160, July.
    13. 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.
    14. Ahmed Doghmi, 2013. "Nash Implementation in an Allocation Problem with Single-Dipped Preferences," Games, MDPI, vol. 4(1), pages 1-12, January.
    15. Moore, John & Repullo, Rafael, 1990. "Nash Implementation: A Full Characterization," Econometrica, Econometric Society, vol. 58(5), pages 1083-1099, September.
    16. 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.
    17. Benoit, Jean-Pierre & Ok, Efe A., 2006. "Maskin's Theorem with limited veto power," Games and Economic Behavior, Elsevier, vol. 55(2), pages 331-339, May.
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    Cited by:

    1. 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.
    2. Diss, Mostapha & Doghmi, Ahmed & Tlidi, Abdelmonaim, 2016. "Strategy proofness and unanimity in many-to-one matching markets," MPRA Paper 75927, University Library of Munich, Germany, revised 08 Dec 2016.

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    More about this item

    Keywords

    Partial honesty; Nash implementation; Partial-Equivalency; Private good economies; Single-peaked preferences.;
    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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