Abstract
This paper identifies a class of mechanisms, called elementary mechanisms, which are (in a precisely defined sense) the “simplest” mechanisms that can implement efficient outcomes in economic environments. The class of social choice correspondences that can be implemented by elementary mechanisms is completely characterized in a variety of different economic contexts.
Similar content being viewed by others
References
Chakravorti, B., 1991, Strategy Space Reduction for Feasible Implementation of Walrasian Performances, Social Choice and Welfare, 8, 235–46.
Chander, P., 1983, On the Informational Size of Message Spaces for Efficient Resource Allocation Processes, Econometrica, 51, 919–938.
Clarke, F., 1989, Methods of Dynamic and Nonsmooth Optimization, SIAM, Philadelphia.
Dasgupta, P., P. Hammond and E. Maskin, 1979. The Implementation of Social Choice Rules, Review of Economic Studies, 46, 185–216.
Dutta, B. and A. Sen, 1991, A Necessary and Sufficient Condition for Two Person Nash Implementation, Review of Economic Studies, 58, 121–128.
Hurwicz, L., 1977, On the Dimensional Requirements of Pareto-Satisfactory Processes, in Arrow, K. and Hurwicz, L. (eds) Studies in Resource Allocation Process, Cambridge University Press, Cambridge.
Hurwicz, L., 1979a, Outcome Functions Yielding Walrasian and Lindahl Allocations at Nash Equilibrium Points, Review of Economic Studies, 46, 217–225.
Hurwicz, L., 1979b, On Allocations Attainable through Nash Equilibria, Journal of Economic Theory, 21, 140–165.
Hurwicz, L., E. Maskin and A. Postlewaite, 1980, Feasible Implementation of Social Choice Correspondences by Nash Equilibria, mimeo.
Jordan, J., 1983, The Competitive Allocation Process is Informationally Efficient Uniquely, Journal of Economic Theory, 28, 1–18.
Maskin, E., 1977, Nash Equilibrium and Welfare Optimality, mimeo.
McKelvey, R., 1989, Game Forms for Nash Implementation of General Social Correspondences, Social Choice and Welfare, 6, 139–156.
Moore, J., 1992, Implementation, Contracts and Renegotiation in Environments with Complete Information, in Advances in Economic Theory, Vol. 1, Edited by J. Laffont, Cambridge University Press, Cambridge.
Moore, J. and R. Repullo, 1990, Nash Implementation: A Full Characterization, Econometrica, 58, 1083–1099.
Nagahisa, R., 1991, A Local Independence Condition for Characterization of Walrasian Allocations Rule, Journal of Economic Theory, 54, 106–123.
Postlewaite, A. and D. Wettstein, 1989, Feasible and Continuous Implementation, Review of Economic Studies, 56, 603–611.
Reichelstein, S. and S. Reiter, 1988, Game Forms with Minimal Message Spaces, Econometrica, 56, 661–692.
Repullo, R., 1987, A Simple Proof of Maskin’s Proof on Nash Implementation, Social Choice and Welfare, 4, 39–42.
Saijo, T., 1988, Strategy Space Reduction in Maskin’s Theorem: Sufficient Conditions for Nash Implementation, Econometrica, 56, 693–700.
Schmeidler, D., 1980, Walrasian Analysis via Strategic Outcome Functions, Econometrica, 48, 1585–1594.
Schmeidler, D., 1982, A Condition Guaranteeing that the Nash Allocation is Walrasian, Journal of Economic Theory, 28, 376–378.
Sieradski, A., 1992, An Introduction to Topology and Homotopy, PWS-Kent Publishing Company, Boston.
Thomson, W., 1979, Comment on L. Hurwicz: On Allocations Attainable through Nash Equilibria, in Aggregation and Revelation of Preferences, edited by J.-J. Laffont, Amsterdam: North-Holland, 420–431.
Tian, G., 1989, Implementation of the Lindahl Correspondence by a Single Valued, Feasible and Continuous Mechanism, Review of Economic Studies, 56, 613–621.
Walker, M., 1981, A Simple Incentive Compatible Scheme for Attaining Lindahl Allocations, Econometrica, 49, 65–73.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Dutta, B., Sen, A. & Vohra, R. Nash implementation through elementary mechanisms in economic environments. Economic Design 1, 173–203 (1994). https://doi.org/10.1007/BF02716620
Received:
Revised:
Issue Date:
DOI: https://doi.org/10.1007/BF02716620