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Secure implementability under Pareto-efficient rules in linear production economies with classical preferences
Authors:Katsuhiko Nishizaki
Affiliation:1. Graduate School of Economics, Momoyama Gakuin University, 1-1, Manabino, Izumi, Osaka 594–1198, Japan;2. Research Institute for Socionetwork Strategies, Kansai University, 3-3-35, Yamate, Suita, Osaka 564–8680, Japan
Abstract:This paper studies secure implementability (Saijo et al. (2007) “Secure Implementation,” Theoretical Economics 2, pp.203–229) in linear production economies with classical preferences. Although secure implementability is in general stronger than the combination of strategy-proofness and non-bossiness (Satterthwaite and Sonnenschein (1981) “Strategy-Proof Allocation Mechanisms at Differentiable Points,” Review of Economic Studies 48, pp.587–597), this paper shows that both properties are equivalent under Pareto-efficient rules in the economies. In addition, this paper characterizes securely implementable and Pareto-efficient rules in the economies when the number of agents is two.
Keywords:Secure implementation  Dominant strategy implementation  Nash implementation  Strategy-proofness  Linear production economy  C72  D51  D52  D61  D71
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