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Behavioral Strong Implementation

Author

Listed:
  • Takashi Hayashi

    (Adam Smith Business School, University of Glasgow)

  • Ritesh Jain

    (Institute of Economics, Academia Sinica)

  • Ville Korpela

    (Turku School of Economics, University of Turku FI-20014, Finland)

  • Michele Lombardi

    (Adam Smith Business School, University of Glasgow; Department of Economics and Statistics, University of Naples "Federico II")

Abstract

Choice behavior is rational if it is based on the maximization of some context-independent preference relation. This study re-examines the questions of implementation theory in a setting where players’ choice behavior need not be rational and coalition formation must be taken into account. Our model implies that with boundedly rational players, the formation of groups greatly affects the design exercise. As a by-product, we also propose a notion of behavioral efficiency and we compare it with existing notions.

Suggested Citation

  • Takashi Hayashi & Ritesh Jain & Ville Korpela & Michele Lombardi, 2021. "Behavioral Strong Implementation," Discussion Papers 141, Aboa Centre for Economics.
    • Handle: RePEc:tkk:dpaper:dp141
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    References listed on IDEAS

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    Cited by:

    1. T. Hayashi & R. Jain & V. Korpela & M. Lombardi, 2023. "Behavioral strong implementation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1257-1287, November.
    2. Guo, Huiyi & Yannelis, Nicholas C., 2022. "Robust coalitional implementation," Games and Economic Behavior, Elsevier, vol. 132(C), pages 553-575.
    3. Altun, Ozan Altuğ & Barlo, Mehmet & Dalkıran, Nuh Aygün, 2023. "Implementation with a sympathizer," Mathematical Social Sciences, Elsevier, vol. 121(C), pages 36-49.
    4. Mehmet Barlo & Nuh Aygün Dalkıran, 2022. "Computational implementation," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 605-633, December.

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    More about this item

    Keywords

    Strong equilibrium; implementation; state-contingent choice rules; bounded rationality;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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