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Title	Nash Implementation in Production Economies with Unequal Skills : A Complete Characterization
Creator	Creator Name Yoshihara, Naoki Yoshihara, Naoki 吉原, 直毅吉原, 直毅ヨシハラ, ナオキヨシハラ, ナオキ Affiliation Affiliation Name Hitotsubashi University
Creator	Creator Name Yamada, Akira Yamada, Akira 山田, 玲良山田, 玲良ヤマダ, アキラヤマダ, アキラ Affiliation Affiliation Name Sapporo University
Editor	Contributor Name Institute of Economic Research, Hitotsubashi University
Key Word	Unequal labor skills
	Nash implementation
	Nonmanipulability of Irrelevant Skills
JEL	C72
	D51
	D78
	D82
Abstract	In production economies with unequal labor skills, one of the intrinsic features for Nash implementation problems is the lack of information about individual skills, which makes the planner ignorant to the set of feasible allocations in advance of production. Given this intrinsic feature, the paper firstly introduces a new axiom, Non-manipulability of Irrelevant Skills (NIS), which together with Maskin Monotonicity constitute the necessary and sufficient conditions for Nash implementation. Secondly, the paper defines some conditions for natural mechanisms which seem relevant, and then shows that any efficient allocation rule is Nashimplementable by the natural mechanisms if and only if it satisfies a slightly stronger variation of NIS and Supporting Price Independence. Following these characterizations, it is shown that there is a Maskin monotonic allocation rule which is not implementable when information about individual skills is absent. In contrast, there are many fair allocation rules which are known to be non-implementable in the present literature, but are implementable by the natural mechanisms given in this paper.
Publisher	Institute of Economic Research, Hitotsubashi University
Issued Date	2010-04
Language	Japanese(jpn)
Resource Type	technical report
Version Type	VoR
Is Part OfRelation -	Related Title Discussion paper series. A ; No. a536
NCID	AA11476336
Number of Pages	30
Appears in Collections	Discussion paper series / Institute of Economic Research, Hitotsubashi University
URL	https://hdl.handle.net/10086/18500