Publication Type
Journal Article
Version
acceptedVersion
Publication Date
9-2023
Abstract
This paper investigates rationalizable implementation of social choice functions (SCFs) in incomplete information environments. We identify weak interim rationalizable monotonicity (weak IRM) as a novel condition and show it to be a necessary and almost sufficient condition for rationalizable implementation. We show by means of robust examples that interim rationalizable monotonicity (IRM), found in the literature, is strictly stronger than weak IRM and that IRM is not necessary for rationalizable implementation, as had been previously claimed. These examples also demonstrate that Bayesian monotonicity, the key condition for full Bayesian implementation, is not necessary for rationalizable implementation. That is, rationalizable implementation can be more permissive than Bayesian implementation. We revisit well-studied classes of economic environments and show that the SCFs considered there are interim rationalizable implementable. A comprehensive discussion of related issues, including well-behaved mechanisms, mechanisms satisfying the best response property, double implementation, and responsive SCFs is also provided.
Keywords
Bayesian incentive compatibility, Bayesian monotonicity, weak interim rationalizable monotonicity, interim rationalizable monotonicity, implementation, rationalizability
Discipline
Economic Theory
Research Areas
Economic Theory
Publication
Mathematics of Operations Research
First Page
1
Last Page
34
ISSN
0364-765X
Identifier
10.1287/moor.2022.0202
Publisher
Institute for Operations Research and Management Sciences
Citation
KUNIMOTO, Takashi; SARAN, Rene; and SERRANO, Roberto.
Interim rationalizable implementation of functions. (2023). Mathematics of Operations Research. 1-34.
Available at: https://ink.library.smu.edu.sg/soe_research/2689
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1287/moor.2022.0202