A solution to the two-person implementation problem

A-Tier
Journal: Journal of Economic Theory
Year: 2021
Volume: 194
Issue: C

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose strike mechanisms as a solution to the classical problem of Hurwicz and Schmeidler (1978) and Maskin (1999) according to which, in two-person societies, no Pareto efficient rule is Nash-implementable. A strike mechanism specifies the number of alternatives that each player vetoes. Each player simultaneously casts these vetoes and the mechanism selects randomly one alternative among the non-vetoed ones. For strict preferences over alternatives and under a very weak condition for extending preferences over lotteries, these mechanisms are deterministic-in-equilibrium. They Nash implement a class of Pareto efficient social choice rules called Pareto-and-veto rules. Moreover, under mild richness conditions on the domain of preferences over lotteries, any Pareto efficient Nash-implementable rule is a Pareto-and-veto rule and hence is implementable through a strike mechanism.

Technical Details

RePEc Handle
repec:eee:jetheo:v:194:y:2021:i:c:s0022053121000788
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25