Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2010

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Equilibrium Rejection of a Mechanism

Gorkem Celik, Michael Peters*

Date: 2010-05-23 10:45 am – 11:15 am
Last modified: 2010-05-17

Abstract


Abstract We study a mechanism design problem in which players can take part in a mechanism to coordinate their actions in a default game. By refusing to participate in the mechanism, a player can revert to playing the default game non-cooperatively. We illustrate with an example that there are allocation rules that can only be supported by equilibria in which some types of some players refuse to participate in the mechanism.

Abstract JEL classification: C72; D82; D43

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