The Financial System
F-series
Date:
Number:CARF-F-112
Behavioral Aspects of Implementation Theory ( The further revision was subsequently published in "Economics Letters". )
Abstract
This paper incorporates behavioral economics into implementation theory. We use mechanisms that are strictly detail-free. We assume that each agent dislikes telling a white lie when such lying does not serve her/his material interest. We present a permissive result wherein by using just a single detail-free mechanism, any alternative can be uniquely implemented in iterative dominance as long as the agents regard this alternative as being socially desirable.