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Robust implementation in rationalizable strategies in general mechanisms

Author

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  • Kunimoto, Takashi

    (School of Economics, Singapore Management University)

  • Saran, Rene

    (Department of Economics, University of Cincinnati)

Abstract

A social choice function (SCF) is robustly implementable in rationalizable strate-gies if every rationalizable strategy profile on every type space results in outcomes consistent with it. First, we establish an equivalence between robust implementation in rationalizable strategies and “weak rationalizable implementation”. Second, using the equivalence result, we identify weak robust monotonicity as a necessary and al-most sufficient condition for robust implementation in rationalizable strategies. This exhibits a contrast with robust implementation in interim equilibria, i.e., every equilib-rium on every type space achieves outcomes consistent with the SCF. Bergemann and Morris (2011) show that strict robust monotonicity is a necessary and almost sufficient condition for robust implementation in interim equilibria. We argue that strict robust monotonicity is strictly stronger than weak robust monotonicity, which further implies that, within general mechanisms, robust implementation in rationalizable strategies is more permissive than robust implementation in interim equilibria. The gap between robust implementation in rationalizable strategies and that in interim equilibria stems from the strictly stronger nonemptiness requirement inherent in the latter concept.

Suggested Citation

  • Kunimoto, Takashi & Saran, Rene, 2024. "Robust implementation in rationalizable strategies in general mechanisms," Economics and Statistics Working Papers 3-2024, Singapore Management University, School of Economics.
  • Handle: RePEc:ris:smuesw:2024_003
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    Cited by:

    1. Takashi Kunimoto & Rene Saran & Roberto Serrano, 2020. "Interim Rationalizable Implementation of Functions," Working Papers 2020-23, Brown University, Department of Economics.
    2. Jain, Ritesh & Lombardi, Michele & Müller, Christoph, 2023. "An alternative equivalent formulation for robust implementation," Games and Economic Behavior, Elsevier, vol. 142(C), pages 368-380.
    3. Ritesh Jain & Michele Lombardi, 2023. "On Interim Rationalizable Monotonicity," Working Papers 202315, University of Liverpool, Department of Economics.

    More about this item

    Keywords

    Ex post incentive compatibility; rationalizability; interim equilibrium; robust implementation; weak rationalizable implementation; weak robust monotonicity;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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