The theory of implementation concerns the problem of designing mechanisms whose equilibria have properties which are desirable according to a specified criterion of social welfare. In this paper, which summarizes the results in Moore and Repullo (1986), we focus on mechanisms which are played in stages, and naturally we restrict attention to those equilibria which satisfy a criterion of perfectness. This approach turns out to be extremely powerful, in the sense that virtually all incentive problems discussed in implementation theory can be resolved by using these mechanisms.
|Number of pages||6|
|Journal||European Economic Review|
|Publication status||Published - 1987|