Lombardi, Michele and Yoshihara, Naoki (2013): Natural implementation with partially honest agents in economic environments.

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Abstract
In this paper, we introduce the weak and the strong notions of partially honest agents (Dutta and Sen, 2012), and then study implementation by natural pricequantity mechanisms (Saijo et al., 1996, 1999) in pure exchange economies with three or more agents in which pureconsequentialistically rational agents and partially honest agents coexist. Firstly, assuming that there exists at least one partially honest agent in either the weak notion or the strong notion, the class of efficient social choice correspondences which are Nashimplementable by such mechanisms is characterized. Secondly, the (unconstrained) Walrasian correspondence is shown to be implementable by such a mechanism when there is at least one partially honest agent of the strong type, which may provide a behavioral foundation for decentralized implementation of the Walrasian equilibrium. Finally, in this setup, the effects of honesty on the implementation of more equitable Pareto optimal allocations can be viewed as negligible.
Item Type:  MPRA Paper 

Original Title:  Natural implementation with partially honest agents in economic environments 
English Title:  Natural implementation with partially honest agents in economic environments 
Language:  English 
Keywords:  Natural implementation, Nash equilibrium, exchange economies, intrinsic preferences for honesty. 
Subjects:  C  Mathematical and Quantitative Methods > C0  General C  Mathematical and Quantitative Methods > C0  General > C02  Mathematical Methods C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C72  Noncooperative Games D  Microeconomics > D0  General > D03  Behavioral Microeconomics: Underlying Principles D  Microeconomics > D0  General > D04  Microeconomic Policy: Formulation, Implementation, and Evaluation D  Microeconomics > D7  Analysis of Collective DecisionMaking > D71  Social Choice ; Clubs ; Committees ; Associations 
Item ID:  48294 
Depositing User:  Michele Lombardi 
Date Deposited:  13 Jul 2013 19:58 
Last Modified:  29 Sep 2019 01:06 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/48294 