Virtual Nash implementation with admissible support

Bochet, Olivier;Maniquet, François
(2010) Journal of Mathematical Economics — Vol. 46, n° 1, p. 99-108 (2010)

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Abstract
A social choice correspondence (SCC) is virtually implementable if it is ε-close (in the probability simplex) to some (exactly) implementable correspondence [Abreu, D., Sen, A., 1991. Virtual Implementation in Nash Equilibrium. Econometrica 59, 997–1021] proved that, without restriction on the set of alternatives receiving strictly positive probability at equilibrium, every SCC is virtually implementable in Nash Equilibrium. We study virtual implementation when the supports of equilibrium lotteries are restricted. We provide a necessary and sufficient condition, imposing joint restrictions on SCCs and admissible supports. Next, we discuss how to construct supports, and we underline an important difficulty. Finally, we study virtual implementation when the support is restricted to the efficient or individually rational alternatives.
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Bochet, O., & Maniquet, F. (2010). Virtual Nash implementation with admissible support. Journal of Mathematical Economics, 46(1), 99-108. https://doi.org/10.1016/j.jmateco.2009.06.011 (Original work published 2010)