Voluntary Implementation
- Creators
-
Jackson, Matthew O.
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Palfrey, Thomas R.
Abstract
We examine Nash implementation when individuals cannot be forced to accept the outcome of a mechanism. Two approaches are studied. The first approach is static where a state-contingent participation constraint defines an implicit mapping from rejected outcomes into outcomes that are individually rational. We call this voluntary implementation and show that the constrained Walrasian correspondence is not voluntarily implementable. The second approach is dynamic where a mechanism is replayed if the outcome at any stage is vetoed by one of the agents. We call this stationary implementation and show that if players discount the future in any way, then the constrained Walrasian correspondence is stationarily implementable.
Additional Information
Revised version. Original dated to May 1998. We thank an associate editor, an anonymous referee, and Bhaskar Dutta for helpful comments and suggestions. Published as Jackson, M. O., & Palfrey, T. R. (2001). Voluntary implementation. Journal of Economic Theory, 98(1), 1-25.Attached Files
Submitted - sswp1077.pdf
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Additional details
- Eprint ID
- 79988
- Resolver ID
- CaltechAUTHORS:20170808-165154639
- Created
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2017-08-09Created from EPrint's datestamp field
- Updated
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2019-10-03Created from EPrint's last_modified field
- Caltech groups
- Social Science Working Papers
- Series Name
- Social Science Working Paper
- Series Volume or Issue Number
- 1077