, Volume 14, Issue 2, pp 259-294

The geometry of implementation: a necessary and sufficient condition for straightforward games

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Abstract.

 We characterize games which induce truthful revelation of the players’ preferences, either as dominant strategies (straightforward games) or in Nash equilibria. Strategies are statements of individual preferences on R n . Outcomes are social preferences. Preferences over outcomes are defined by a distance from a bliss point. We prove that g is straightforward if and only if g is locally constant or dictatorial (LCD), i.e., coordinate-wise either a constant or a projection map locally for almost all strategy profiles. We also establish that: (i) If a game is straightforward and respects unanimity, then the map g must be continuous, (ii) Straightforwardness is a nowhere dense property, (iii) There exist differentiable straightforward games which are non-dictatorial. (iv) If a social choice rule is Nash implementable, then it is straightforward and locally constant or dictatorial.

Received: 30 December 1994/Accepted: 22 April 1996