On the implementation of the median

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Abstract

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.

Original languageEnglish
Article number102595
JournalJournal of Mathematical Economics
Volume99
DOIs
Publication statusPublished - 1 Mar 2022

Keywords

  • Bayesian implementation
  • Median rule
  • Nash implementation
  • Robust implementation
  • Single-peaked preferences
  • Strategy-proofness

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