Robust Rationalizable Implementation
10 Pages Posted: 28 Oct 2009
Date Written: July 9, 2009
This paper investigates the extent to which rationalizable implementation depends on the implicit common knowledge restrictions usually embodied in traditional models. It is shown that such restrictions are largely without loss of generality: under fairly general conditions, a mechanism implements a social choice function f on a type space X if and only if there exists k\geq1 such that the same mechanism implements f under the weaker assumption that the agents' k-order beliefs are among those described by X, while higher-order beliefs are unrestricted. The result is applied to direct implementation on payoff type spaces, and related to the partial (incentive compatible) implementation problem.
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