On the implementation of the median
In the single-peaked domain, the median rule is strategy-proof but not implementable in (Bayes–)Nash equilibrium by its associated direct mechanism. We define the value-based median mechanism that implements the median rule in (Bayes–)Nash equilibrium in the single-peaked domain under complete and i...
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Veröffentlicht in: | Journal of mathematical economics 2022-03, Vol.99, p.102595, Article 102595 |
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Hauptverfasser: | , , |
Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | In the single-peaked domain, the median rule is strategy-proof but not implementable in (Bayes–)Nash equilibrium by its associated direct mechanism. We define the value-based median mechanism that implements the median rule in (Bayes–)Nash equilibrium in the single-peaked domain under complete and incomplete information. Such a mechanism selects the median of the profile of different values announced by the agents (i.e., ignoring redundant announcements). The value-based median does not depend on agents’ beliefs (in line with robust mechanism design). In the case of incomplete information, it induces truthful revelation of preferences (in line with strategy-proofness) for almost all peaks. We present extensions of our results to generalized median rules and finite policy spaces and their limitations. |
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ISSN: | 0304-4068 1873-1538 |
DOI: | 10.1016/j.jmateco.2021.102595 |