Stochastically stable implementation Articles uri icon

publication date

  • March 2012

start page

  • 59

end page

  • 72

volume

  • 3

International Standard Serial Number (ISSN)

  • 1869-4187

Electronic International Standard Serial Number (EISSN)

  • 1869-4195

abstract

  • Restricting attention to economic environments, we study implementation under perturbed better-response dynamics (BRD). A social choice function (SCF) is implementable in stochastically stable strategies of perturbed BRD whenever the only outcome supported by the stochastically stable strategies of the perturbed process is the outcome prescribed by the SCF. For uniform mistakes, we show that any epsilon-secure and strongly efficient SCF is implementable when there are at least five agents. Extensions to incomplete information environments are also obtained

keywords

  • robust implementation; bounded rationality; evolutionary dynamics; mechanisms; stochastic stability