Stochastically stable implementation

• Antonio Cabrales ^[1] ; Roberto Serrano ^[2]
  1. [1] Universidad Carlos III de Madrid

     Universidad Carlos III de Madrid

     Madrid, España

     
  2. [2] Brown University

     Brown University

     City of Providence, Estados Unidos

     
• Localización: SERIEs : Journal of the Spanish Economic Association, ISSN 1869-4195, Vol. 3, Nº. 1-2, 2012 (Ejemplar dedicado a: Salvador Barberà), págs. 59-72
• Idioma: inglés
• Enlaces
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• Resumen

  • 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 ε-secure and strongly efficient SCF is implementable when there are at least five agents. Extensions to incomplete information environments are also obtained.