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The Robustness of Robust Implementation

Author

Listed:
  • Moritz Meyer-ter-Vehn

    (Princeton University)

  • Stephen Morris

    (Princeton University)

Abstract

We show that a mechanism that robustly implements optimal outcomes in a one-dimensional supermodular environment continues to robustly implement e-optimal outcomes in all close-by environments. Robust implementation of e-outcomes is thus robust to small perturbations of the environment. This is in contrast to ex-post implementation which is not robust in this sense as only trivial social choice functions are ex-post implementable in generic environments.

Suggested Citation

  • Moritz Meyer-ter-Vehn & Stephen Morris, 2010. "The Robustness of Robust Implementation," Working Papers 1252, Princeton University, Department of Economics, Econometric Research Program..
  • Handle: RePEc:pri:metric:me001.pdf
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    References listed on IDEAS

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    1. Kim-Sau Chung & J.C. Ely, 2007. "Foundations of Dominant-Strategy Mechanisms," Review of Economic Studies, Oxford University Press, vol. 74(2), pages 447-476.
    2. Dirk Bergemann & Stephen Morris, 2012. "Robust Implementation in Direct Mechanisms," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 4, pages 153-194, World Scientific Publishing Co. Pte. Ltd..
    3. Ledyard, John O., 1978. "Incentive compatibility and incomplete information," Journal of Economic Theory, Elsevier, vol. 18(1), pages 171-189, June.
    4. Dirk Bergemann & Stephen Morris, 2012. "Robust Mechanism Design," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 2, pages 49-96, World Scientific Publishing Co. Pte. Ltd..
    5. Battigalli Pierpaolo & Siniscalchi Marciano, 2003. "Rationalization and Incomplete Information," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 3(1), pages 1-46, June.
    6. ,, 2006. "Ex post implementation in environments with private goods," Theoretical Economics, Econometric Society, vol. 1(3), pages 369-393, September.
    7. Philippe Jehiel & Moritz Meyer-ter-Vehn & Benny Moldovanu & William R. Zame, 2006. "The Limits of ex post Implementation," Econometrica, Econometric Society, vol. 74(3), pages 585-610, May.
    8. Hagerty, Kathleen M. & Rogerson, William P., 1987. "Robust trading mechanisms," Journal of Economic Theory, Elsevier, vol. 42(1), pages 94-107, June.
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    12. Partha Dasgupta & Peter Hammond & Eric Maskin, 1979. "The Implementation of Social Choice Rules: Some General Results on Incentive Compatibility," Review of Economic Studies, Oxford University Press, vol. 46(2), pages 185-216.
    13. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
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    Citations

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    Cited by:

    1. Jehiel, Philippe & Meyer-ter-Vehn, Moritz & Moldovanu, Benny, 2012. "Locally robust implementation and its limits," Journal of Economic Theory, Elsevier, vol. 147(6), pages 2439-2452.
    2. Kristóf Madarász & Andrea Prat, 2017. "Sellers with Misspecified Models," Review of Economic Studies, Oxford University Press, vol. 84(2), pages 790-815.
    3. Carroll, Gabriel & Meng, Delong, 2016. "Locally robust contracts for moral hazard," Journal of Mathematical Economics, Elsevier, vol. 62(C), pages 36-51.
    4. Dirk Bergemann & Stephen Morris, 2012. "Robust Mechanism Design: An Introduction," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 1, pages 1-48, World Scientific Publishing Co. Pte. Ltd..
    5. Miura, Shintaro & Yamashita, Takuro, 2018. "Divergent Interpretation and Divergent Prediction in Communication," TSE Working Papers 18-939, Toulouse School of Economics (TSE).
    6. Modibo Camara & Jason Hartline & Aleck Johnsen, 2020. "Mechanisms for a No-Regret Agent: Beyond the Common Prior," Papers 2009.05518, arXiv.org.
    7. Javier Rivas Ruiz, 2014. "Mechanism Design and Robust Control," Department of Economics Working Papers 22/14, University of Bath, Department of Economics.
    8. Rivas, Javier, 2015. "Mechanism design and bounded rationality: The case of type misreporting," Mathematical Social Sciences, Elsevier, vol. 78(C), pages 6-13.

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    More about this item

    Keywords

    robust implementation; social choice;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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