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National implementation with partially honest agents


  • Lombardi Michele
  • Yoshihara Naoki



The paper proposes necessary and sufficient conditions for the natural implementation of(efficient) social choice correspondences (SCCs) in pure finite exchange economies when some ofthe agents are partially honest. A partially honest agent is an agent who strictly prefers to tellthe truth when lying has no better material consequences for her. Firstly, it is shown that ifthere is even one partially honest agent in the economy (and the planner does not know heridentity), then any SCC is Nash implementable by a natural price-allocation mechanism. Secondly,and in sharp contrast with the results of conventional models of natural implementation, it isshown that the equivalence relationship between natural price-allocation mechanisms and naturalprice-quantity² mechanisms no longer holds. Finally, and even more strikingly, the paper reportsthat the class of implementable SCCs by natural price-quantity mechanisms is significantly enlarged.

Suggested Citation

  • Lombardi Michele & Yoshihara Naoki, 2012. "National implementation with partially honest agents," Research Memorandum 005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  • Handle: RePEc:unm:umamet:2012005

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    References listed on IDEAS

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    4. Dutta, Bhaskar & Sen, Arunava, 2012. "Nash implementation with partially honest individuals," Games and Economic Behavior, Elsevier, vol. 74(1), pages 154-169.
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    15. 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.
    16. Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 47-74, March.
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    Cited by:

    1. Hitoshi Matsushima, 2013. "Process manipulation in unique implementation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 883-893, October.

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