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Implementation in undominated strategies with partially honest agents

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  • Mukherjee, Saptarshi
  • Muto, Nozomu
  • Ramaekers, Eve

Abstract

We consider implementation in undominated strategies by bounded mechanisms. We provide a complete characterization of the class of social choice correspondences that are implementable when agents are partially honest, in the sense that they have strict preferences for being sincere when truthfulness does not result in a worse outcome. As an application, we show that the Pareto correspondence is implemented by a finite mechanism.

Suggested Citation

  • Mukherjee, Saptarshi & Muto, Nozomu & Ramaekers, Eve, 2017. "Implementation in undominated strategies with partially honest agents," Games and Economic Behavior, Elsevier, vol. 104(C), pages 613-631.
    • Handle: RePEc:eee:gamebe:v:104:y:2017:i:c:p:613-631
    DOI: 10.1016/j.geb.2017.05.014
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    1. Dutta, Bhaskar & Sen, Arunava, 2012. "Nash implementation with partially honest individuals," Games and Economic Behavior, Elsevier, vol. 74(1), pages 154-169.
    2. Michele Lombardi & Naoki Yoshihara, 2020. "Partially-honest Nash implementation: a full characterization," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(3), pages 871-904, October.
    3. Matsushima, Hitoshi, 2008. "Role of honesty in full implementation," Journal of Economic Theory, Elsevier, vol. 139(1), pages 353-359, March.
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    5. Michele Lombardi & Naoki Yoshihara, 2017. "Natural implementation with semi-responsible agents in pure exchange economies," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(4), pages 1015-1036, November.
    6. Lombardi, M. & Yoshihara, N., 2018. "Treading a fine line: (Im)possibilities for Nash implementation with partially-honest individuals," Games and Economic Behavior, Elsevier, vol. 111(C), pages 203-216.
    7. Doghmi Ahmed & Ziad Abderrahmane, 2013. "On Partially Honest Nash Implementation in Private Good Economies with Restricted Domains: A Sufficient Condition," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 13(1), pages 415-428, September.
    8. Kartik, Navin & Tercieux, Olivier & Holden, Richard, 2014. "Simple mechanisms and preferences for honesty," Games and Economic Behavior, Elsevier, vol. 83(C), pages 284-290.
    9. Satterthwaite, Mark Allen, 1975. "Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions," Journal of Economic Theory, Elsevier, vol. 10(2), pages 187-217, April.
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    11. Matthew O. Jackson, 1992. "Implementation in Undominated Strategies: A Look at Bounded Mechanisms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(4), pages 757-775.
    12. Semih Koray & Arkadii Slinko, 2008. "Self-selective social choice functions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 31(1), pages 129-149, June.
    13. Tilman Borgers & Doug Smith, 2012. "Robustly Ranking Mechanisms," American Economic Review, American Economic Association, vol. 102(3), pages 325-329, May.
    14. Matsushima, Hitoshi, 2008. "Behavioral aspects of implementation theory," Economics Letters, Elsevier, vol. 100(1), pages 161-164, July.
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    16. Ortner, Juan, 2015. "Direct implementation with minimally honest individuals," Games and Economic Behavior, Elsevier, vol. 90(C), pages 1-16.
    17. Ville Korpela, 2014. "Bayesian implementation with partially honest individuals," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(3), pages 647-658, October.
    18. Sjaak Hurkens & Navin Kartik, 2009. "Would I lie to you? On social preferences and lying aversion," Experimental Economics, Springer;Economic Science Association, vol. 12(2), pages 180-192, June.
    19. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
    20. Takuro Yamashita, 2015. "Implementation in Weakly Undominated Strategies: Optimality of Second-Price Auction and Posted-Price Mechanism," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(3), pages 1223-1246.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Michele Lombardi & Naoki Yoshihara, 2020. "Partially-honest Nash implementation: a full characterization," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(3), pages 871-904, October.
    2. Mukherjee, Saptarshi, 2018. "Implementation in undominated strategies by bounded mechanisms: Some results on compromise alternatives," Research in Economics, Elsevier, vol. 72(3), pages 384-391.
    3. Hitoshi Matsushima, 2020. "Implementation, Honesty, and Common Knowledge," CARF F-Series CARF-F-500, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    4. Matsushima, Hitoshi, 2022. "Epistemological implementation of social choice functions," Games and Economic Behavior, Elsevier, vol. 136(C), pages 389-402.
    5. Hitoshi Matsushima, 2022. "Honesty and Epistemological Implementation of Social Choice Functions with Asymmetric Information," CARF F-Series CARF-F-548, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    6. Savva, Foivos, 2021. "Motives and implementation with rights structures," Economics Letters, Elsevier, vol. 204(C).
    7. Hagiwara, Makoto, 2018. "A simple mechanism for double implementation with semi-socially-responsible agents," Economics Letters, Elsevier, vol. 171(C), pages 51-53.
    8. Mukherjee, Saptarshi & Muto, Nozomu & Sen, Arunava, 2024. "Implementation in undominated strategies with applications to auction design, public good provision and matching," Journal of Economic Theory, Elsevier, vol. 216(C).
    9. Savva, Foivos, 2018. "Strong implementation with partially honest individuals," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 27-34.
    10. Mukherjee, Saptarshi & Muto, Nozomu & Ramaekers, Eve & Sen, Arunava, 2019. "Implementation in undominated strategies by bounded mechanisms: The Pareto correspondence and a generalization," Journal of Economic Theory, Elsevier, vol. 180(C), pages 229-243.
    11. Altun, Ozan Altuğ & Barlo, Mehmet & Dalkıran, Nuh Aygün, 2023. "Implementation with a sympathizer," Mathematical Social Sciences, Elsevier, vol. 121(C), pages 36-49.
    12. Hagiwara, Makoto, 2019. "Double implementation without no-veto-power," Mathematical Social Sciences, Elsevier, vol. 101(C), pages 124-130.

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    More about this item

    Keywords

    Implementation in undominated strategies; Partial honesty; Bounded mechanism; Pareto correspondence;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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