A solution to the two-person implementation problem
Résumé
We propose a solution to the classical problem of Hurwicz and Schmeidler [1978] and Maskin [1999] according to which no Pareto efficient rule is Nash implementable. To this end, we consider implementation through mechanisms that are deterministic-in-equilibrium while lotteries are allowed off-equilibrium. We show that there are Pareto efficient rules which are implementable and that any such rule is implementable through some simple veto mechanism. Importantly , neither completeness nor transitivity of the preferences over lotteries are required to achieve implementation.
Domaines
Economies et financesOrigine | Fichiers produits par l'(les) auteur(s) |
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