EconPapers    
Economics at your fingertips  
 

Outcome-robust mechanisms for Nash implementation

George F. N. Shoukry ()
Additional contact information
George F. N. Shoukry: Federal Deposit Insurance Corporation

Social Choice and Welfare, 2019, vol. 52, issue 3, 497-526

Abstract: Abstract Mechanisms for Nash implementation in the literature are fragile in the sense that they fail if just one or two players do not follow their equilibrium strategy. A mechanism is outcome-robust if its equilibrium outcome is not affected by any deviating minority of players. Is Nash implementation possible with outcome-robust mechanisms? I first show that in the standard environment, it is impossible to Nash-implement any nonconstant social choice rule with outcome-robust mechanisms even if a small number of players are partially honest. If simple transfers are used and if at least one player is partially honest, however, any social choice rule is Nash implementable using an outcome-robust mechanism. The mechanism presented in this paper makes no assumptions about how transfers enter players’ preferences except that transfers are valuable. Moreover, it has: no transfers in equilibrium, arbitrarily small off-equilibrium transfers, and no integer or modulo games.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s00355-018-1154-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:sochwe:v:52:y:2019:i:3:d:10.1007_s00355-018-1154-0

Ordering information: This journal article can be ordered from
http://www.springer. ... c+theory/journal/355

Access Statistics for this article

Social Choice and Welfare is currently edited by Bhaskar Dutta, Marc Fleurbaey, Elizabeth Maggie Penn and Clemens Puppe

More articles in Social Choice and Welfare from Springer, The Society for Social Choice and Welfare Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-11-06
Handle: RePEc:spr:sochwe:v:52:y:2019:i:3:d:10.1007_s00355-018-1154-0