Non-Consequential Moral Preferences, Detail-Free Implementation, and Representative Systems
We investigate implementation of social choice functions where the central planner has no knowledge about the detail of model specifications, and only a few individuals participate in the mechanism. In contrast with the standard model of implementation, each agent has non-consequential moral preference in that she prefers truth-telling to lying whenever the resulting consequence is unchanged. We show that with complete information, there exists a single, detail-free mechanism that can implement any social choice function whenever agents regard its value as being socially desirable. This result holds even if psychological cost for lying is close to zero. Non-consequential moral preferences play a very powerful role in eliminating unwanted equilibria in detail-free mechanism design with representative systems. We extend this result to incomplete information.
|Date of creation:||Oct 2004|
|Date of revision:|
|Contact details of provider:|| Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033|
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ingela Brundin & Ching-to Albert Ma, 1998.
"Moral Hazard, Insurance, and Some Collusion,"
0089, Boston University - Industry Studies Programme.
- Ingela Alger & Ching-to Albert Ma, 2001. "Moral Hazard, Insurance, and Some Collusion," Boston College Working Papers in Economics 496, Boston College Department of Economics.
- Ching-to Albert Ma & Ingela Alger, 1999. "Moral Hazard, Insurance and Some Collusion," FMG Discussion Papers dp318, Financial Markets Group.
- Martin J Osborne & Ariel Rubinstein, 2009.
"A Course in Game Theory,"
814577000000000225, UCLA Department of Economics.
- Brian Erard & Jonathan Feinstein, 1993.
"Honesty and Evasion in the Tax Compliance Game,"
Carleton Economic Papers
93-06, Carleton University, Department of Economics, revised 1994.
- Kfir Eliaz, 2002. "Fault Tolerant Implementation," Review of Economic Studies, Oxford University Press, vol. 69(3), pages 589-610.
- Matsushima Hitoshi, 1993. "Bayesian Monotonicity with Side Payments," Journal of Economic Theory, Elsevier, vol. 59(1), pages 107-121, February.
- Roberto Serrano & Rajiv Vohra, . "Type Diversity and Virtual Bayesian Implementation Creation-Date: 2000," Working Papers 2000-16, Brown University, Department of Economics.
- Abreu, Dilip & Matsushima, Hitoshi, 1992. "Virtual Implementation in Iteratively Undominated Strategies: Complete Information," Econometrica, Econometric Society, vol. 60(5), pages 993-1008, September.
- Matsushima, Hitoshi, 1988. "A new approach to the implementation problem," Journal of Economic Theory, Elsevier, vol. 45(1), pages 128-144, June.
- Eric Maskin, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 23-38.
- Jean Tirole, 1999. "Incomplete Contracts: Where Do We Stand?," Econometrica, Econometric Society, vol. 67(4), pages 741-782, July.
- 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.
When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2004cf304. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office)
If references are entirely missing, you can add them using this form.