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On Maskin monotonicity of solution based social choice rules

Author

Listed:
  • Haake, Claus-Jochen

    (Center for Mathematical Economics, Bielefeld University)

  • Trockel, Walter

    (Center for Mathematical Economics, Bielefeld University)

Abstract

Howard (1992) argues that the Nash bargaining solution is not Nash implementable, as it does not satisfy Maskin monotonicity. His arguments can be extended to other bargaining solutions as well. However, by defining a social choice correspondence that is based on the solution rather than on its realizations, one can overcome this shortcoming. We even show that such correspondences satisfy a stronger version of monotonicity that is even sufficient for Nash implementability.

Suggested Citation

  • Haake, Claus-Jochen & Trockel, Walter, 2011. "On Maskin monotonicity of solution based social choice rules," Center for Mathematical Economics Working Papers 393, Center for Mathematical Economics, Bielefeld University.
    • Handle: RePEc:bie:wpaper:393
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    References listed on IDEAS

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    14. Walter Trockel, 2002. "Integrating the Nash program into mechanism theory," Review of Economic Design, Springer;Society for Economic Design, vol. 7(1), pages 27-43.
    15. Yamato, Takehiko, 1992. "On nash implementation of social choice correspondences," Games and Economic Behavior, Elsevier, vol. 4(3), pages 484-492, July.
    16. Trockel, Walter, 2017. "Can and should the Nash Program be looked at as a part of mechanism theory," Center for Mathematical Economics Working Papers 322, Center for Mathematical Economics, Bielefeld University.
    17. Danilov, Vladimir, 1992. "Implementation via Nash Equilibria," Econometrica, Econometric Society, vol. 60(1), pages 43-56, January.
    18. Trockel, Walter, 2017. "Unique Nash implementation for a class of bargaining solutions," Center for Mathematical Economics Working Papers 308, Center for Mathematical Economics, Bielefeld University.
    19. Haake, Claus-Jochen, 2017. "Implementation of the Kalai Smorodinski bargaining solution in dominant strategies," Center for Mathematical Economics Working Papers 301, Center for Mathematical Economics, Bielefeld University.
    20. Walter Trockel, 2000. "Implementations of the Nash solution based on its Walrasian characterization," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 16(2), pages 277-294.
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    Citations

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    Cited by:

    1. Haake, Claus-Jochen, 2009. "Two support results for the Kalai-Smorodinsky solution in small object division markets," Mathematical Social Sciences, Elsevier, vol. 57(2), pages 177-187, March.
    2. Claus-Jochen Haake & Walter Trockel, 2020. "Introduction to the Special Issue “Bargaining”," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 37(1), pages 1-6, November.
    3. Roberto Serrano, 2021. "Sixty-seven years of the Nash program: time for retirement?," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(1), pages 35-48, March.
    4. William Thomson, 2022. "On the axiomatic theory of bargaining: a survey of recent results," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 491-542, December.
    5. Claus-Jochen Haake & Walter Trockel, 2021. "Socio-legal Systems and Implementation of the Nash Solution in Debreu-Hurwicz Equilibrium," Working Papers CIE 140, Paderborn University, CIE Center for International Economics.
    6. Claus-Jochen Haake & Walter Trockel, 2022. "Socio-legal systems and implementation of the Nash solution in Debreu–Hurwicz equilibrium," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 635-649, December.
    7. Trockel, Walter, 2011. "An exact non-cooperative support for the sequential Raiffa solution," Journal of Mathematical Economics, Elsevier, vol. 47(1), pages 77-83, January.
    8. Haake, Claus-Jochen & Trockel, Walter, 2021. "Socio-legal Systems and Implementation of the Nash Solution in Debreu-Hurwicz Equilibrium," Center for Mathematical Economics Working Papers 647, Center for Mathematical Economics, Bielefeld University.

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    More about this item

    Keywords

    Bargaining games; Implementation; Mechanism; Maskin monotonicity; Nash program; Social choice rule;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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