Implementation with State Dependent Feasible Sets and Preferences: A Renegotiation Approach

Abstract

In this paper we present a model of implementation when the feasible set and preferences are state dependent based on the idea that agents renegotiate unfeasible allocations. We characterize the maximal set of Social Choice Correspondences that can be implemented in a class of renegotiation functions that do not reward agents for unfeasibilities. * We thank Carmen Beviá for very useful comments. The paper was presented in the III Workshop of Social Choice held in Malaga, June 2005. We are indebted to the audience for very useful comments, specially to Asher Wolinski. We acknowledge financial support from CAICYT under project PB BEC2002-02194 and from Fundación BBVA.