The Theory of Implementation. What Did We Learn?

40 Pages Posted: 17 Nov 2015

See all articles by Luis C. Corchón

Luis C. Corchón

Charles III University of Madrid - Department of Economics

Date Written: November 13, 2015

Abstract

In this survey we review the most important aspects of Implementation theory. We present the notions of a mechanism, a social choice correspondence and that of implementation. We first review the main contributions to implementation under dominant strategies namely the impossibility theorems that show the impossibility to implement efficient allocations when the preference domain is sufficiently large. Then we review Nash implementation and we show that a Maskin monotonic social choice correspondence satisfying no veto power can be implemented. Finally we review the case of Bayesian equilibrium, a kind of intermediate case between Nash and Dominant strategy implementation.

Keywords: Mechanism, Implementation, Design

JEL Classification: C70, H41

Suggested Citation

Corchón Diaz, Luis Carlos, The Theory of Implementation. What Did We Learn? (November 13, 2015). Available at SSRN: https://ssrn.com/abstract=2690301 or http://dx.doi.org/10.2139/ssrn.2690301

Luis Carlos Corchón Diaz (Contact Author)

Charles III University of Madrid - Department of Economics ( email )

Calle Madrid 126
Getafe, 28903
Spain

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