Econometrica: Jan 1986, Volume 54, Issue 1

Realization and Nash Implementation: Two Aspects of Mechanism Design<139:RANITA>2.0.CO;2-7
p. 139-152

Steven R. Williams

This paper relates the issue of efficiency in communication to the problem of designing games that implement a given objective in Nash equilibrium. A message process that "realizes" (or computes) the objective is used to construct a game that implements it in Nash equilibrium. Any efficient encoding of information that occurs in the message process causes a reduction in the size of the strategy space of the game that is constructed. Necessary and (stronger) sufficient conditions on the message process are given for this construction.

Log In To View Full Content