Content deleted Content added
Removed "lack of sources" banner |
m Disambiguating links to Public good (disambiguation) (link changed to Public good (economics)) using DisamAssist. |
||
Line 1:
'''Implementation theory''' is an area of research in [[game theory]] concerned with whether a class of [[Mechanism design|mechanisms (or institutions) can be designed]] whose equilibrium outcomes implement a given set of [[normative]] goals or [[Welfare economics|welfare]] criteria.<ref name = "palfrey">Palfrey, Thomas R. "Chapter 61 Implementation Theory." Handbook of Game Theory with Economic Applications, 2002. {{doi|10.1016/S1574-0005(02)03024-2}}.</ref>
There are two general types of implementation problems: the economic problem of [[Production (economics)|producing]] and [[Resource allocation|allocating]] [[Public good (economics)|public]] and [[Private good|private goods]] and choosing over a finite set of alternatives.<ref name = "maskin">Maskin, Eric. "Implementation Theory." Science, 2002. {{doi|10.1111/j.1477-9552.2010.00281.x}}.</ref> In the case of producing and allocating public/private goods, [[Solution concept|solution concepts]] are focused on finding [[Dominant Strategy|dominant strategies]].
In his paper "Counterspeculation, Auctions, and Competitive Sealed Tenders," [[William Vickrey]] showed that if preferences are restricted to the case of quasi-linear utility functions then the mechanism dominant strategy is dominant-strategy implementable.<ref>Vickrey, William. "Counterspeculation, Auctions, and Competitive Sealed Tenders." The Journal of Finance 16, no. 1 (1961): 8–37. {{doi|10.1111/j.1540-6261.1961.tb02789.x}}. {{JSTOR|2977633}}.
| |||