Locally robust implementation and its limits

Philippe Jehiel; Moritz Meyer-ter-Vehn; Benny Moldovanu

doi:10.1016/j.jet.2012.05.012

Locally robust implementation and its limits

Philippe Jehiel, Moritz Meyer-ter-Vehn, Benny Moldovanu

Research output: Contribution to journal › Article › peer-review

Abstract

We study a notion of locally robust implementation that captures the idea that the planner may know agents' beliefs well, but not perfectly. Locally robust implementation is a weaker concept than ex-post implementation, but we show that no regular allocation function is locally robust implementable in generic settings with quasi-linear utility, interdependent and bilinear values, and multi-dimensional payoff types.

Original language	English
Pages (from-to)	2439-2452
Number of pages	14
Journal	Journal of Economic Theory
Volume	147
Issue number	6
DOIs	https://doi.org/10.1016/j.jet.2012.05.012
State	Published - Nov 2012
Externally published	Yes

Keywords

Interdependent values
Multi-dimensional types
Perturbed beliefs
Robust implementation

All Science Journal Classification (ASJC) codes

Economics and Econometrics

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10.1016/j.jet.2012.05.012

Cite this

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title = "Locally robust implementation and its limits",

abstract = "We study a notion of locally robust implementation that captures the idea that the planner may know agents' beliefs well, but not perfectly. Locally robust implementation is a weaker concept than ex-post implementation, but we show that no regular allocation function is locally robust implementable in generic settings with quasi-linear utility, interdependent and bilinear values, and multi-dimensional payoff types.",

keywords = "Interdependent values, Multi-dimensional types, Perturbed beliefs, Robust implementation",

author = "Philippe Jehiel and Moritz Meyer-ter-Vehn and Benny Moldovanu",

note = "Funding Information: We would like to thank seminar audiences at the Princeton Mechanism Design Conference 2010, Toronto and UCLA for helpful comments. This work originated at the Trimester Program on Mechanism Design at the University of Bonn. We are grateful to the Hausdorff Research Institute for Mathematics for its hospitality and financial support.",

year = "2012",

month = nov,

doi = "10.1016/j.jet.2012.05.012",

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AU - Meyer-ter-Vehn, Moritz

AU - Moldovanu, Benny

N1 - Funding Information: We would like to thank seminar audiences at the Princeton Mechanism Design Conference 2010, Toronto and UCLA for helpful comments. This work originated at the Trimester Program on Mechanism Design at the University of Bonn. We are grateful to the Hausdorff Research Institute for Mathematics for its hospitality and financial support.

PY - 2012/11

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N2 - We study a notion of locally robust implementation that captures the idea that the planner may know agents' beliefs well, but not perfectly. Locally robust implementation is a weaker concept than ex-post implementation, but we show that no regular allocation function is locally robust implementable in generic settings with quasi-linear utility, interdependent and bilinear values, and multi-dimensional payoff types.

AB - We study a notion of locally robust implementation that captures the idea that the planner may know agents' beliefs well, but not perfectly. Locally robust implementation is a weaker concept than ex-post implementation, but we show that no regular allocation function is locally robust implementable in generic settings with quasi-linear utility, interdependent and bilinear values, and multi-dimensional payoff types.

KW - Interdependent values

KW - Multi-dimensional types

KW - Perturbed beliefs

KW - Robust implementation

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U2 - 10.1016/j.jet.2012.05.012

DO - 10.1016/j.jet.2012.05.012

M3 - مقالة

SN - 0022-0531

VL - 147

SP - 2439

EP - 2452

JO - Journal of Economic Theory

JF - Journal of Economic Theory

IS - 6

ER -

Locally robust implementation and its limits

Abstract

Keywords

All Science Journal Classification (ASJC) codes

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