Advertisement

Review of Economic Design

, Volume 14, Issue 1–2, pp 17–25 | Cite as

On Maskin monotonicity of solution based social choice rules

  • Claus-Jochen Haake
  • Walter Trockel
Original Paper
  • 49 Downloads

Abstract

Howard (J Econ Theory 56:142–159, 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.

Keywords

Maskin monotonicity Social choice rule Bargaining games Nash program Mechanism Implementation 

JEL Classification

C71 C78 D61 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Bergin J, Duggan J (1999) Implementation-theoretic approach to non-cooperative foundations. J Econ Theory 86: 50–76CrossRefGoogle Scholar
  2. Dagan N, Serrano R (1998) Invariance and randomness in the Nash program for coalitional games. Econ Lett 58: 43–49CrossRefGoogle Scholar
  3. Danilov V (1992) Implementation via Nash equilibria. Econometrica 60: 43–56CrossRefGoogle Scholar
  4. Haake C-J (2000) Support and implementation of the Kalai–Smorodinsky bargaining solution. In: Inderfurth K, Schwödiauer G, Domschke W, Juhnke F, Kleinschmidt P, Wäscher G (eds) Oper. Research Proceedings (1999). Springer, Heidelberg, pp 170–175Google Scholar
  5. Howard JV (1992) A social choice rule and its implementation in perfect equilibrium. J Econ Theory 56: 142–159CrossRefGoogle Scholar
  6. Hurwicz L (1994) Economic design, adjustment processes, mechanisms and institutions. Econ Des 1: 1–14Google Scholar
  7. Maskin ES (1999) Nash equilibrium and welfare optimality. Rev Econ Stud 66: 23–38CrossRefGoogle Scholar
  8. Moulin H (1984) Implementing the Kalai–Smorodinsky solution. J Econ Theory 33: 32–45CrossRefGoogle Scholar
  9. Nash JF (1951) Non-cooperative games. Ann Math 54: 286–295CrossRefGoogle Scholar
  10. Nash JF (1953) Two person cooperative games. Econometrica 21: 128–140CrossRefGoogle Scholar
  11. Naeve J (1999) Nash implementation of the Nash bargaining solution using intuitive message spaces. Econ Lett 62: 23–28CrossRefGoogle Scholar
  12. Serrano R (1997) A comment on the Nash program and the theory of implementation. Econ Lett 55: 203–208CrossRefGoogle Scholar
  13. Serrano R (2005a) Fifty years of the Nash program, 1953–2003. Invest Econ 29: 219–258Google Scholar
  14. Serrano R (2005b) Nash program. In: Durlauf S, Blume L (eds) The new palgrave dictionary of economics, 2nd edn. McMillan, LondonGoogle Scholar
  15. Trockel W (1999) Unique implementation for a class of bargaining solutions. Int Game Theory Rev 1: 267–272CrossRefGoogle Scholar
  16. Trockel W (2000) Implementation of the Nash solution based on its Walrasian characterization. Econ Theory 16: 277–294CrossRefGoogle Scholar
  17. Trockel W (2002a) Integrating the Nash program into mechanism theory. Rev Econ Des 7: 27–43Google Scholar
  18. Trockel W (2002b) A universal meta bargaining realization of the Nash solution. Soc Choice Wel 19: 581–586CrossRefGoogle Scholar
  19. Trockel W (2003) Can and should the Nash program be looked at as a part of mechanism theory?. In: Sertel MR, Korey S (eds) Advances in economic design. Springer, Heidelberg, pp 153–174Google Scholar
  20. van Damme E (1986) The Nash bargaining solution is optimal. J Econ Theory 38: 78–100CrossRefGoogle Scholar
  21. van Damme E (1987) Stability and perfection of Nash equilibria. Springer, BerlinGoogle Scholar
  22. Yamato T (1992) On Nash implementation of social choice correspondences. Games Econ Behav 4: 484–492CrossRefGoogle Scholar

Copyright information

© Springer-Verlag 2008

Authors and Affiliations

  1. 1.Institute of Mathematical EconomicsBielefeld UniversityBielefeldGermany

Personalised recommendations