Rationalizable Information Equilibria

Rationalizable Trade

“No-trade” theorems provide sufficient conditions for the absence of equilibrium trade between asymmetrically informed players.1 In this paper, we examine when trade is rationalizable. Since rationalizability is a weaker solution concept than equilibrium, trade is sometimes rationalizable, even when there is no equilibrium trade. We provide necessary and sufficient conditions for rationalizable...

Rationalizable voting

We derive necessary and sufficient conditions in order for binary voting choices over a finite number of pairs of alternatives to be consistent with voter preferences that admit concave utility representations. These conditions imply simple testable restrictions on the location of voters’ ideal points, and can be used to predict individual voting behavior. On the other hand, if the location of ...

Rationalizable implementation

We consider the implementation of social choice functions under complete information in rationalizable strategies. A strict (and thus stronger) version of the monotonicity condition introduced by Maskin (1999) is necessary under the solution concept of rationalizability. Assuming the social choice function is responsive (i.e., it never selects the same outcome in two distinct states), we show t...

Rationalizable Strategies and Perfect Equilibria in Common Value Auctions with Variable Supply

Auctions with variable supply are multi-unit auctions, in which the seller determines the supply quantity as a function of the bidding. These auctions are used on various markets ranging from Treasury bills and IPOs to rare wine and art. In this work we compare in a common value model the mixed strategy subgame perfect equilibria and the rationalizable strategies of the uniform price and the di...

Rationalizable Expectations