Implementation in Mixed Nash Equilibrium

A mechanism implements a social choice correspondence f in mixed Nash equilibrium if at any preference profile, the set of all pure and mixed Nash equilibrium outcomes coincides with the set of f-optimal alternatives at that preference profile. This definition generalizes Maskin’s definition of Nash implementation in that it does not require each optimal alternative to be the outcome of a pure Nash equilibrium. We show that the condition of weak set-monotonicity, a weakening of Maskin’s monotonicity, is necessary for implementation. We provide sufficient conditions for implementation and show that important social choice correspondences that are not Maskin monotonic can be implemented in mixed Nash equilibrium.


Issue Date:
Apr 28 2009
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/271298
Language:
English
Total Pages:
29
JEL Codes:
C72; D71
Series Statement:
WERP 902




 Record created 2018-04-12, last modified 2018-04-12

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)