 A solution to the two-person implementation problemJean-François Laslier, Matias Nuñez and Remzi Sanver Post-Print from HAL Abstract: We propose strike mechanisms as a solution to the classical problem of Hurwicz and Schmeidler (1978) and Maskin (1999) according to which, in two-person societies, no Pareto efficient rule is Nash-implementable. A strike mechanism specifies the number of alternatives that each player vetoes. Each player simultaneously casts these vetoes and the mechanism selects randomly one alternative among the non-vetoed ones. For strict preferences over alternatives and under a very weak condition for extending preferences over lotteries, these mechanisms are deterministic-in-equilibrium. They Nash implement a class of Pareto efficient social choice rules called Pareto-and-veto rules. Moreover, under mild richness conditions on the domain of preferences over lotteries, any Pareto efficient Nash-implementable rule is a Pareto-and-veto rule and hence is implementable through a strike mechanism. Keywords: Nash implementation; Two players; Pareto efficiency (search for similar items in EconPapers) Published in Journal of Economic Theory, 2021, 194, ⟨10.1016/j.jet.2021.105261⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-03342559 DOI: 10.1016/j.jet.2021.105261 Access Statistics for this paper More papers in Post-Print from HAL |
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