Perfect implementation

B-Tier
Journal: Games and Economic Behavior
Year: 2011
Volume: 71
Issue: 1
Pages: 121-140

Authors (3)

Izmalkov, Sergei (New Economic School (NES)) Lepinski, Matt (not in RePEc) Micali, Silvio (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Privacy and trust affect our strategic thinking, yet have not been precisely modeled in mechanism design. In settings of incomplete information, traditional implementations of a normal-form mechanism--by disregarding the players' privacy, or assuming trust in a mediator--may fail to reach the mechanism's objectives. We thus investigate implementations of a new type. We put forward the notion of a perfect implementation of a normal-form mechanism : in essence, a concrete extensive-form mechanism exactly preserving all strategic properties of , without relying on trusted mediators or violating the players' privacy. We prove that any normal-form mechanism can be perfectly implemented by a verifiable mediator using envelopes and an envelope-randomizing device. Differently from a trusted mediator, a verifiable one only performs prescribed public actions, so that everyone can verify that he is acting properly, and that he never learns any information that should remain private.

Technical Details

RePEc Handle
repec:eee:gamebe:v:71:y:2011:i:1:p:121-140
Journal Field
Theory
Author Count
3
Added to Database
2026-02-02