 Fault Tolerant Bayesian Implementation in Exchange EconomiesAhmed Doghmi and Abderrahmane Ziad MPRA Paper from University Library of Munich, Germany Abstract: In this work, we extend the concept of Fault Tolerant Implementation of Eliaz (2002) to the concept of Fault Tolerant Implementation in incomplete information environments. In particular, we work in a domain where information is non-exclusive by choosing a model of pure exchange economy. As in Eliaz (2002), we suppose the existence of at most k faulty players who do not act in an optimal way, either because they do not understand the rules of the game or they make mistakes. We develop a new concept of equilibrium, called k-Fault Tolerant Bayesian Equilibrium (k-FTBE) and a new concept of implementation, called fault tolerant Bayesian implementation. In a model of pure exchange economy, we show that weak k- Bayesian monotonicity is a necessary condition for the implementation of social choice correspondences in k-FTBE. We also introduce the no-exclusiveness information condition (k-NEI), and we show that k-Bayesian monotonicity and k-NEI are sufficient conditions for implementation when there are at least three players and the number of the faulty players is less then (n/2)-1. Keywords: Bayesian implementation; fault tolerance; bounded rationality (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:67353 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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