Secure implementation

Tatsuyoshi Saijo, Tomas Sjöström, Takehiko Yamato

Research output: Contribution to journalArticlepeer-review

36 Scopus citations

Abstract

Strategy-proofness, requiring that truth-telling be a dominant strategy, is a standard concept in social choice theory. However, this concept has serious drawbacks. In particular, many strategy-proof mechanisms have multiple Nash equilibria, some of which produce the wrong outcome. A possible solution to this problem is to require double implementation in Nash equilibrium and in dominant strategies, i.e., secure implementation. We characterize securely implementable social choice functions and investigate the connections with dominant strategy implementation and robust implementation. We show that in standard quasi-linear environments with divisible private or public goods, there exist surplus-maximizing (non-dictatorial) social choice functions that can be securely implemented.

Original languageEnglish (US)
Pages (from-to)203-229
Number of pages27
JournalTheoretical Economics
Volume2
Issue number3
StatePublished - Sep 2007

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Keywords

  • Nash implementation
  • Robust implementation
  • Secure implementation
  • Strategy-proofness

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