The Robustness of Robust Implementation
Princeton University - Department of Economics
June 22, 2010
Economic Theory Center Working Paper No. 002-2010
We show that a mechanism that robustly implements optimal outcomes in a one-dimensional supermodular environment continues to robustly implement ε-optimal outcomes in all close-by environments. Robust implementation of ε-optimal outcomes is thus robust to small perturbations of the environment. This is in contrast to ex-post implementation which is not robust in this sense as only trivial social choice functions are ex-post implementable in generic environments.
Number of Pages in PDF File: 15
Date posted: December 22, 2010