Browsing by Subject "Behavioral implementation"

Now showing 1 - 5 of 5

Open Access
An algorithmic approach to Nash implementation with two individuals
(2024-07) Uğuz, Güneş
This thesis investigates the Nash implementation problem in the behavioral domain with two individuals. By strengthening the necessary results in the literature and adopting an algorithmic approach, we provide constructive sufficiency results. Our findings facilitate the design of mechanisms in two individual environments where the individuals’ behavior may violate the standard axioms of rationality.
Open Access
An impossibility result regarding behavioral implementation of efficiency with two individuals
(2023-12) Uçkaç, Ömer
This thesis examines Nash implementation of behaviorally efficient social choice rules á la de Clippel (2014) with two individuals under the full behavioral domain, i.e., when individuals’ choices do not satisfy the weak axiom of revealed preferences. We propose a new definition of a dictatorial social choice rule in the full behavioral domain and show that when there are at least four alternatives, a behaviorally efficient social choice rule á la de Clippel (2014) is implementable if and only if it is dictatorial according to our definition whenever there are only two individuals under consideration. Our result parallels the impossibility result of Maskin (1999), which says that in the full rational domain, a social choice rule that satisfies the Pareto property is implementable if and only if it is dictatorial whenever there are only two individuals in the society.
Open Access
Behavioral implementation under incomplete information
(Elsevier, 2023-09-11) Dalkıran, Nuh Aygün; Barlo, M.
We investigate implementation under incomplete information allowing for individuals' choices featuring violations of rationality. Our primitives are individuals' interim choices that do not have to satisfy the weak axiom of revealed preferences. In this setting, we provide necessary as well as sufficient conditions for behavioral implementation under incomplete information. We also introduce behavioral interim incentive Pareto efficiency and investigate its implementability under incomplete information.
Open Access
Computational implementation
(Review of Economic Design, 2022-12) Barlo, M.; Dalkıran, Nuh Aygün
Following a theoretical analysis of the scope of Nash implementation for a given mechanism, we study the formal framework for computational identification of Nash implementability. We provide computational tools for Nash implementation in finite environments. In particular, we supply Python codes that identify (i) the domain of preferences that allows Nash implementation by a given mechanism, (ii) the maximal domain of preferences that a given mechanism Nash implements Pareto efficiency, (iii) all consistent collections of sets of a given social choice correspondence (SCC), the existence of which is a necessary condition for Nash implementation of this SCC, and (iv) check whether some of the well-known sufficient conditions for Nash implementation hold for a given SCC. Our results exhibit that the computational identification of all collections consistent with an SCC enables the planner to design appealing mechanisms. © 2022, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.
Open Access
Implementation with a sympathizer
(Elsevier B.V., 2022-12-15) Altun, O. A.; Barlo, M.; Dalkıran, Nuh Aygün
We study Nash implementation under complete information with the distinctive feature that the planner knows neither individuals’ state-contingent preferences (payoff states) nor how they correspond to the states of the economy on which the social goal depends. Our main question is whether or not the planner can extract only the essential information about individuals’ underlying preferences and simultaneously implement the given social goal. Our setup is especially relevant when the planner cannot use mechanisms asking for the full revelation of the payoffs states due to privacy and political correctness concerns or non-disclosure and confidentiality agreements. In economic environments with at least three individuals, we show that the planner may Nash implement a social goal while extracting only the essential information about the payoff states from the society whenever this goal has standard monotonicity properties and one of the individuals whose identity is not necessarily known to the planner and the other individuals, is a sympathizer. Vaguely put, such an agent is inclined toward the truthful revelation of the essential information about how states of the economy are associated with individuals’ preferences, while he is not inclined to reveal the realized ‘true’ state of the economy. Then, in every Nash equilibrium of the mechanism we design, all individuals truthfully disclose the same essential information about the payoff states.