Emiliano Catonini and
Papers from arXiv.org
We define a local notion of dominance that speaks to the true choice problems among actions in a game tree. When we do not restrict players' ability to do contingent reasoning, a reduced strategy is weakly dominant if and only if it prescribes a locally dominant action at every decision node, therefore any dynamic decomposition of a direct mechanism that preserves strategy-proofness is robust to the lack of global planning. Under a form of wishful thinking, we also show that strategy-proofness is robust to the lack of forward planning. Moreover, we identify simple forms of contingent reasoning and foresight, driven by the local viewpoint. We construct a dynamic game that implements the Top Trading Cycles allocation in locally dominant actions under these simple forms of reasoning.
Date: 2020-12, Revised 2021-09
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://arxiv.org/pdf/2012.14432 Latest version (application/pdf)
Working Paper: Local Dominance (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2012.14432
Access Statistics for this paper
More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().