Nash-implementation of competitive equilibria via a bounded mechanism
Journal article: We deal with the problem of providing incentives for the implementation of competitive outcomes in a pure-exchange economy with finitely many households. We construct a feasible price-quantity mechanism, which fully implements Walras equilibria via Nash equilibria in fairly general environments. Traders' preferences need neither to be ordered nor continuous. In addition, the mechanism is such that no pure strategy is weakly dominated, hence is bounded (in the sense of Jackson 1992). In particular it makes no use of any integer game.
Author(s)
Gaël Giraud, Hubert Stahn
Journal
- Review of Economic Design
Date of publication
- 2013
Keywords JEL
Keywords
- Strategic boundedness
- Weakly dominated strategy
- Mechanism design
Pages
- 43-62
URL of the HAL notice
Version
- 1
Volume
- 17