In this paper we study a situation where the planner cannot commit to a mechanism and the outcome function is substituted by the planner herself. We assume (i) agents have complete information and play simultaneously and (ii) given the messages announced by the agents, the planner reacts in an optimal way given her beliefs. This transforms the implementation problem into a signaling game. We derive necessary and sufficient conditions for interactive implementation under different restrictions on the planner's out-of-equilibrium beliefs. We compare our results to standard results on Nash implementation.Journal of Economic LiteratureClassification Numbers: C72, D71, D82.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics