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Natural implementation with semi-responsible agents in pure exchange economies

Author

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  • Michele Lombardi

    (Adam Smith Business School, University of Glasgow)

  • Naoki Yoshihara

    (Department of Economics, University of Massachusetts Amherst)

Abstract

We study Nash implementation by natural price-quantity mechanisms in pure exchange economies when agents have intrinsic preferences for responsibility. An agent has an intrinsic preference for responsibility if she cares about truth-telling that is in line with the goal of the mechanism designer besides her material well-being. A semi-responsible agent is an agent who, given what her opponents do, acts in an irresponsible manner when a responsible behavior poses obstacles to her material well-being. The class of efficient allocation rules that are Nash implementable is identified provided that there is at least one agent who is semi-responsible. The Walrasian rule is shown to belong to that class.

Suggested Citation

  • Michele Lombardi & Naoki Yoshihara, 2017. "Natural implementation with semi-responsible agents in pure exchange economies," UMASS Amherst Economics Working Papers 2017-05, University of Massachusetts Amherst, Department of Economics.
  • Handle: RePEc:ums:papers:2017-05
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. 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.
    2. Hayashi, Takashi & Lombardi, Michele, 2019. "One-step-ahead implementation," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 110-126.
    3. Makoto Hagiwara & Hirofumi Yamamura & Takehiko Yamato, 2018. "Implementation with socially responsible agents," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 6(1), pages 55-62, April.
    4. Savva, Foivos, 2021. "Motives and implementation with rights structures," Economics Letters, Elsevier, vol. 204(C).
    5. Hagiwara, Makoto, 2018. "A simple mechanism for double implementation with semi-socially-responsible agents," Economics Letters, Elsevier, vol. 171(C), pages 51-53.
    6. Lombardi, M. & Yoshihara, N., 2018. "Treading a fine line: (Im)possibilities for Nash implementation with partially-honest individuals," Games and Economic Behavior, Elsevier, vol. 111(C), pages 203-216.
    7. Hitoshi Matsushima, 2020. "Implementation, Honesty, and Common Knowledge," CARF F-Series CARF-F-500, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    8. Hitoshi Matsushima, 2021. "Epistemological Implementation of Social Choice Functions," CARF F-Series CARF-F-518, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    9. Mukherjee, Saptarshi & Muto, Nozomu & Ramaekers, Eve, 2017. "Implementation in undominated strategies with partially honest agents," Games and Economic Behavior, Elsevier, vol. 104(C), pages 613-631.
    10. Doğan, Battal, 2017. "Eliciting the socially optimal allocation from responsible agents," Journal of Mathematical Economics, Elsevier, vol. 73(C), pages 103-110.
    11. Savva, Foivos, 2018. "Strong implementation with partially honest individuals," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 27-34.
    12. Hagiwara, Makoto, 2019. "Double implementation without no-veto-power," Mathematical Social Sciences, Elsevier, vol. 101(C), pages 124-130.

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    More about this item

    Keywords

    Nash equilibrium; exchange economies; intrinsic preferences for responsibility; boundary problem; price-quantity mechanism;
    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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