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Two-Player Rationalizable Implementation

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The paper characterizes the class of two-player social choice functions implementable in rationalizable strategies. We offer two equivalent conditions, Two-Player Generalized Strict Maskin Monotonicity** and Partition Monotonicity. Similar to Bergemann et al. (2011) and Xiong (2022), Two-Player Generalized Strict Maskin Monotonicity** relies on the existence of a partition of the set of states. However, Partition Monotonicity provides a construction for the partition.

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  • Ritesh Jain & Ville Korpela & Michele Lombardi, 2022. "Two-Player Rationalizable Implementation," CSEF Working Papers 660, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  • Handle: RePEc:sef:csefwp:660
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    1. Laslier, Jean-François & Núñez, Matías & Remzi Sanver, M., 2021. "A solution to the two-person implementation problem," Journal of Economic Theory, Elsevier, vol. 194(C).
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    10. Ritesh Jain & Michele Lombardi, 2022. "On Interim Rationalizable Monotonicity," Working Papers 202315, University of Liverpool, Department of Economics.
    11. Geoffroy de Clippel & Kfir Eliaz & Brian Knight, 2014. "On the Selection of Arbitrators," American Economic Review, American Economic Association, vol. 104(11), pages 3434-3458, November.
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    19. Eric Maskin, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 23-38.
    20. R Jain & V Korpela & M Lombardi, 2021. "An Iterative Approach to Rationalizable Implementation," IEAS Working Paper : academic research 21-A001, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    21. Jain, Ritesh, 2021. "Rationalizable implementation of social choice correspondences," Games and Economic Behavior, Elsevier, vol. 127(C), pages 47-66.
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    23. 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 949-980, November.
    24. 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.
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    27. Hurwicz, Leonid & Schmeidler, David, 1978. "Construction of Outcome Functions Guaranteeing Existence and Pareto Optimality of Nash Equilibria," Econometrica, Econometric Society, vol. 46(6), pages 1447-1474, November.
    28. Mezzetti, Claudio & Renou, Ludovic, 2017. "Repeated Nash implementation," Theoretical Economics, Econometric Society, vol. 12(1), January.
    29. Cabrales, Antonio & Serrano, Roberto, 2011. "Implementation in adaptive better-response dynamics: Towards a general theory of bounded rationality in mechanisms," Games and Economic Behavior, Elsevier, vol. 73(2), pages 360-374.
    30. Danilov, Vladimir, 1992. "Implementation via Nash Equilibria," Econometrica, Econometric Society, vol. 60(1), pages 43-56, January.
    31. Siyang Xiong, 2022. "Rationalizable Implementation of Social Choice Functions: Complete Characterization," Papers 2202.04885, arXiv.org.
    32. Abreu, Dilip & Matsushima, Hitoshi, 1992. "A Response [Virtual Implementation in Iteratively Undominated Strategies I: Complete Information]," Econometrica, Econometric Society, vol. 60(6), pages 1439-1442, November.
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    Cited by:

    1. Ritesh Jain & Ville Korpela & Michele Lombardi, 2022. "Two-Player Rationalizable Implementation," CSEF Working Papers 660, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    2. Ritesh Jain & Ville Korpela & Michele Lombardi, 2022. "Two-Player Rationalizable Implementation," CSEF Working Papers 660, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.

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    More about this item

    Keywords

    Implementation; Two Players; Rationalizability; Complete Information.;
    All these keywords.

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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