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Lombardi, Michele; Yoshihara, Naoki (2017)
Publisher: Springer
Languages: English
Types: Research
Subjects: exchange economies, price-quantity mechanism, boundary problem, intrinsic preferences for responsibility,, Nash equilibrium, C72, D71
ddc: ddc:330
We study Nash implementation by natural price-quantity mechanisms in pure exchange economies when agents have intrinsic preferences for responsibility. An agent has an intrinsic preference for responsibility if she cares about truth-telling that is in line with the goal of the mechanism designer besides her material well-being. A semi-responsible agent is an agent who, given what her opponents do, acts in an irresponsible manner when a responsible behavior poses obstacles to her material well-being. The class of efficient allocation rules that are Nash implementable is identified provided that there is at least one agent who is semi-responsible. The Walrasian rule is shown to belong to that class.
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