VIRTUAL IMPLEMENTATION IN BACKWARDS INDUCTION

We examine a sequential mechanism which is a simple modification of th e normal form mechanism introduced by Abreu and Matsushima (1992). We show that almost any social choice function can be virtually implement ed via a finite sequential game of perfect information. The solution c oncept assumed is backwards induction. In particular, any social choic e function that is virtually implementable via the Abreu-Matsushima me chanism is also virtually implementable by a sequential mechanism. Jou rnal of Economic Literature Classification Number: C72. (C) 1996 Acade mic Press, Inc.