Showing 1 - 10 of 15
theory. Despite earlier claims about the nonexistence of equilibrium with adverse selection, we show that equilibrium always … for better risk spreading. We also show that default opens the door to a theory of endogenous assets. …
Persistent link: https://www.econbiz.de/10005087374
A social choice function is robustly implemented if every equilibrium on every type space achieves outcomes consistent with it. We identify a robust monotonicity condition that is necessary and (with mild extra assumptions) sufficient for robust implementation. Robust monotonicity is strictly...
Persistent link: https://www.econbiz.de/10005087384
A social choice function is robustly implementable if there is a mechanism under which the process of iteratively eliminating strictly dominated messages leads to outcomes that agree with the social choice at every type profile. In an interdependent value environment with single crossing...
Persistent link: https://www.econbiz.de/10005087399
A social choice function is robustly implemented if every equilibrium on every type space achieves outcomes consistent with it. We identify a robust monotonicity condition that is necessary and (with mild extra assumptions) sufficient for robust implementation. Robust monotonicity is strictly...
Persistent link: https://www.econbiz.de/10008545755
We consider the implementation of social choice functions under complete information in rationalizable strategies. A strict (and thus stronger) version of the monotonicity condition introduced by Maskin (1999) is necessary under the solution concept of rationalizability. Assuming the social...
Persistent link: https://www.econbiz.de/10008476247
This note studies (full) implementation of social choice functions under complete information in (correlated) rationalizable strategies. The monotonicity condition shown by Maskin (1999) to be necessary for Nash implementation is also necessary under the more stringent solution concept. We show...
Persistent link: https://www.econbiz.de/10004998323
In our previous paper we built a general equilibrium model of default and punishment in which equilibrium always exists and endogenously determines asset promises, penalties, and sales constraints. In this paper we interpret the endogenous sales constraints as equilibrium signals. By...
Persistent link: https://www.econbiz.de/10005463898
equilibrium always exists in our model, and that default, in conjunction with refinement, opens the door to a theory of endogenous …
Persistent link: https://www.econbiz.de/10005463908
We analyze the problem of fully implementing a social choice set in ex post equilibrium. Weidentify an ex post monotonicity condition that is necessary and -- in economic environments -- sufficient for full implementation in ex post equilibrium. We also identify an ex post monotonicityno veto...
Persistent link: https://www.econbiz.de/10005463973
A social choice function is robustly implemented if every equilibrium on every type space achieves outcomes consistent with a social choice function. We identify a robust monotonicity condition that is necessary and (with mild extra assumptions) sufficient for robust implementation. Robust...
Persistent link: https://www.econbiz.de/10005593322