A1 Refereed original research article in a scientific journal
Implementation without Rationality Assumptions
Authors: Korpela Ville
Publisher: Springer
Publication year: 2012
Journal: Theory and Decision
Journal acronym: Theory Dec
Number in series: 2
Volume: 72
Issue: 2
First page : 189
Last page: 203
Number of pages: 15
ISSN: 0040-5833
eISSN: 1573-7187
DOI: https://doi.org/10.1007/s11238-011-9251-x
Web address : http://link.springer.com/article/10.1007%2Fs11238-011-9251-x
Abstract
Hurwicz (Social Choice and public decision making. Essays in honor of Kenneth J. Arrow, Cambridge University Press, Cambridge, 1986) was the first to study an approach to implementation theory based on choice functions instead of preference relations. We argue that the solution concept used by him, the generalized Nash equilibrium, is not really compatible with the idea that individual behavior is describable by a choice function. A new solution concept that better fits the choice function framework is then introduced. Using this, we investigate what behavioral assumptions are needed for the full characterizations of Nash implementable social choice correspondences to still hold. We will show that a condition known as Property α is central.
Hurwicz (Social Choice and public decision making. Essays in honor of Kenneth J. Arrow, Cambridge University Press, Cambridge, 1986) was the first to study an approach to implementation theory based on choice functions instead of preference relations. We argue that the solution concept used by him, the generalized Nash equilibrium, is not really compatible with the idea that individual behavior is describable by a choice function. A new solution concept that better fits the choice function framework is then introduced. Using this, we investigate what behavioral assumptions are needed for the full characterizations of Nash implementable social choice correspondences to still hold. We will show that a condition known as Property α is central.
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