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Nash implementation in production economies with unequal skills: a characterization

Author

Listed:
  • Naoki Yoshihara

    (University of Massachusetts Amherst
    Kochi University of Technology
    Hitotsubashi University)

  • Akira Yamada

    (Sapporo University)

Abstract

The present study examines production economies with unequal labor skills, where the planner is ignorant of the set of feasible allocations in advance of production. In particular, we characterize Nash implementation by canonical mechanisms by means of Maskin monotonicity and a new axiom, non-manipulability of unused skills (NUS), where the latter represents a weak independence property with respect to changes in skills. Following these characterizations, we show that some Maskin monotonic social choice correspondences are not implementable if information about individual skills is absent.

Suggested Citation

  • Naoki Yoshihara & Akira Yamada, 2019. "Nash implementation in production economies with unequal skills: a characterization," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(1), pages 113-134, June.
    • Handle: RePEc:spr:sochwe:v:53:y:2019:i:1:d:10.1007_s00355-019-01174-w
    DOI: 10.1007/s00355-019-01174-w
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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