Abstract:-
This paper considers implementation in undominated strategies by finite mechanisms, where multiple outcomes may be implemented at a single state of the world. We establish a sufficient condition for implementation applicable in a general environment with private values. We apply it to three well-known environments and obtain strikingly permissive results. In the single-object auction, the second-price auction with a reserve price can be outperformed in terms of revenue. In the public good provision prob- lem, the Vickrey–Clarke–Groves mechanism can be outperformed from the view-point of a designer who wishes to minimise deficit subject to efficiency. In the two-sided matching environment where preferences on one side of the market are private information, the social choice correspondence that outputs all stable matchings at every preference profile, is implementable.
