Hitotsubashi Institute for Advanced Study


Treading a Fine Line:
(Im)possibilities for Nash Implementation with Partially-honest Individuals


This paper investigates the robustness of Dutta and Sen’s (2012) Theorem 1 to weaker notions of truth-telling. An individual honesty standard is modeled as a subgroup of the society, including the individual herself, for which she feels truth-telling concerns. An individual i is honest when she states her true preferences as well as rankings (not necessarily complete) of outcomes that are consistent with the true preferences of individuals in her honesty standard. The paper offers a necessary condition for Nash implementation, called partial-honesty monotonicity, and shows that in an independent domain of preferences that condition is equivalent to Maskin monotonicity.

Report No.: HIAS-E-47
Author(s): Michele Lombardi(a)
Naoki Yoshihara(b), (c), (d)
Affiliation: (a) Adam Smith Business School, University of Glasgow, Glasgow, G12 8QQ, United Kingdom
(b) Department of Economics, University of Massachusetts Amherst, Crotty Hall, 412 North Pleasant Street, Amherst, MA 01002, USA
(c) The Institute of Economics Research, Hitotsubashi University, 2-1, Naka, Kunitachi, Tokyo 186-8601 Japan
(d) School of Management, Kochi University of Technology, Tosayamada, Kami-chity, Kochi 782-8501, Japan
Issued Date: July 2017
Keywords: Nash implementation; partial-honesty; non-connected honesty standards, independent domain
JEL: C72, D71, D82