In this note, we prove two impossibility results of Nash implementation in two-person economies. First, we will show the non-existence of continuous and balanced mechanisms which implement the Walrasian correspondence. Second, by adding a convexity assumption of mechanisms, we present the impossibility of continuous implementation of Pareto optimal and individually rational allocations in balanced way.
- Nash equilibrium
- Walras equilibrium
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)