Title
Direct Implementation with Minimally Honest Individuals
Author(s)
Juan M. Ortner Juan Ortner (Princeton University)
Abstract
I consider a standard implementation problem under complete information when agents have a minimal degree of honesty. In particular, I assume that agents are white lie averse: they strictly prefer to tell the truth whenever lying has no effect on their material payoff. I show that if there are at least five agents who are all white lie averse and if I impose either of two refinements of Nash equilibrium, then a simple direct mechanism fully implements any social choice function.
Creation Date
2010-12
Section URL ID
ET
Paper Number
wp009.pdf
URL
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.431.6797&rep=rep1&type=pdf
File Function
Jel
C72, C73, D71, D78
Keyword(s)
Implementation, Mechanism design, White lie aversion
Suppress
false
Series
10