Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Nov, 2011, Volume 79, Issue 6

Efficient Repeated Implementation

https://doi.org/10.3982/ECTA8859
p. 1967-1994

Jihong Lee, Hamid Sabourian

This paper examines repeated implementation of a social choice function (SCF) with infinitely lived agents whose preferences are determined randomly in each period. An SCF is repeatedly implementable in Nash equilibrium if there exists a sequence of (possibly history‐dependent) mechanisms such that its Nash equilibrium set is nonempty and every equilibrium outcome path results in the desired social choice at every possible history of past play and realizations of uncertainty. We show, with minor qualifications, that in the complete information environment an SCF is repeatedly implementable in Nash equilibrium if and only if it is efficient. We also discuss several extensions of our analysis.


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Supplemental Material

Supplement to "Efficient Repeated Implementation"

A PDF file containing formal results and proofs omitted from manuscript.