Natural implementation with partially-honest agents in economic environments with free-disposal

Michele Lombardi and Naoki Yoshihara ()

No SDES-2015-1, Working Papers from Kochi University of Technology, School of Economics and Management

Abstract: We study Nash implementation by natural price-quantity mechanisms in pure exchange economies with free-disposal (Saijo et al., 1996, 1999) where agents have weak/strong intrinsic preferences for honesty (Dutta and Sen, 2012). Firstly, the Walrasian rule is shown tobe non-implementable where all agents have weak (but not strong) intrinsic preferences for honesty. Secondly, the class of e¢ cient allocation rules that are implementable is identi…ed provided that at least one agent has strong intrinsic preferences for honesty. Lastly, the Walrasian rule is shown to belong to that class.

Keywords: Natural implementation; Nash equilibrium; exchange economies; intrinsic preferences for honesty (search for similar items in EconPapers)
JEL-codes: C72 D71 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2015-01, Revised 2015-01
New Economics Papers: this item is included in nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in SDE Series, January 2015, pages 1-29

Downloads: (external link)
http://www.souken.kochi-tech.ac.jp/seido/wp/SDES-2015-1.pdf First version, 2015 (application/pdf)

Related works:
Working Paper: Natural Implementation with Partially-honest Agents in Economic Environments with Free-disposal (2014)
Working Paper: Natural implementation with partially-honest agents in economic environments with free-disposal (2014)
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:kch:wpaper:sdes-2015-1

Access Statistics for this paper

More papers in Working Papers from Kochi University of Technology, School of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by Sachiko Minami ().