Working Paper Number
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.
UMass Amherst Open Access Policy
Lombardi, Michele and Yoshihara, Naoki, "Natural implementation with semi-responsible agents in pure exchange economies" (2017). Economics Department Working Paper Series. 221.
Retrieved from http://scholarworks.umass.edu/econ_workingpaper/221