Extensive Form Implementation in Incomplete Information Environments

Abstract

We study the implementation of social choice rules in incomplete information environments. A sufficiency condition called posterior reversal is given for extensive form implementation. The condition has a natural interpretation in signaling terms: consistent posterior distributions under truth-telling are different from consistent posteriors under deception. This variation in the distribution over player types leads to variation in the distribution over actions and outcomes (comparing truth-telling and deception). We exploit this feature to implement social choice rules.Extensive form games, Signaling