Monotonic extensions on economic domains
William Thomson
Review of Economic Design, 1999, vol. 4, issue 1, 13-33
Abstract:
The property of "monotonicity" is necessary, and in many contexts, sufficient, for a solution to be Nash implementable (Maskin 1977). In this paper, we follow Sen (1995) and evaluate the extent to which a solution may fail monotonicity by identifying the minimal way in which it has to be enlarged so as to satisfy the property. We establish a general result relating the "minimal monotonic extensions" of the intersection and the union of a family of solutions to the minimal monotonic extensions of the members of the family. We then calculate the minimal monotonic extensions of several solutions in a variety of contexts, such as classical exchange economies, with either individual endowments or a social endowment, economies with public goods, and one-commodity economies in which preferences are single-peaked. For some of the examples, very little is needed to recover monotonicity, but for others, the required enlargement is quite considerable, to the point that the distributional objective embodied in the solution has to be given up altogether.
Keywords: Maskin-monotonicity; Nash-implementation; minimal monotonic extension; fair allocation (search for similar items in EconPapers)
JEL-codes: C7 D50 D63 D78 (search for similar items in EconPapers)
Date: 1999-02-09
Note: Received: 21 September 1996 / Accepted: 17 August 1998
References: Add references at CitEc
Citations: View citations in EconPapers (25)
Downloads: (external link)
http://link.springer.de/link/service/journals/10058/papers/9004001/90040013.pdf (application/pdf)
Access to the full text of the articles in this series is restricted
Related works:
Working Paper: Monotonic Extension on Economic Domains (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:reecde:v:4:y:1999:i:1:p:13-33
Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10058
Access Statistics for this article
Review of Economic Design is currently edited by Atila Abdulkadiroglu, Fuhito Kojima and Tilman Börgers
More articles in Review of Economic Design from Springer, Society for Economic Design
Bibliographic data for series maintained by Sonal Shukla (sonal.shukla@springer.com) and Springer Nature Abstracting and Indexing (indexing@springernature.com).