Econ Research Seminar by Takashi Kunimoto (SMU) on Friday, Apr 20 2018
Getting Dynamic Implementation to Work
Date: Friday, April 20
Time: 1-2 pm
Venue: Room 1300
Abstract:
We develop a new class of two-stage dynamic mechanisms, which fully implement any social choice function under initial rationalizability incomplete information environments. In experiments, we find that the mechanisms can induce efficient investment in a two-sided hold-up problem with ex-ante investment and performs better than both a three-stage mechanism introduced by Moore and Repullo (1988) and a one-stage mechanism introduced by Kartik, Tercieux and Holden (2014). We show theoretically that our mechanism is robust to small amounts of incomplete information about the state of nature and to moderate levels of reciprocity. We also show that the mechanism can be made renegotiation proof if the players are strictly risk averse and highlight the robustness of the mechanism to a wide variety of reasoning processes and behavioral assumptions.
Prof. Kunimoto’s website:
https://sites.google.com/site/tkunimoto73/
Date: Friday, April 20
Time: 1-2 pm
Venue: Room 1300
Abstract:
We develop a new class of two-stage dynamic mechanisms, which fully implement any social choice function under initial rationalizability incomplete information environments. In experiments, we find that the mechanisms can induce efficient investment in a two-sided hold-up problem with ex-ante investment and performs better than both a three-stage mechanism introduced by Moore and Repullo (1988) and a one-stage mechanism introduced by Kartik, Tercieux and Holden (2014). We show theoretically that our mechanism is robust to small amounts of incomplete information about the state of nature and to moderate levels of reciprocity. We also show that the mechanism can be made renegotiation proof if the players are strictly risk averse and highlight the robustness of the mechanism to a wide variety of reasoning processes and behavioral assumptions.
Prof. Kunimoto’s website:
https://sites.google.com/site/tkunimoto73/