NASH IMPLEMENTATION IN PRODUCTION ECONOMIES

This gaper provides a general way to incorporate private ownership pro duction economies into the implementation of the Walrasian corresponde nce. We present two mechanisms, both of which permit agents to behave strategically with respect to their initial endowments, preferences, a nd production possibility sets. The first mechanism deals with the cas e of endowment destruction, the second deals with the case of endowmen t withholding. We show that each mechanism Nash implements the Walrasi an correspondence. In addition, both mechanisms are individually feasi ble, balanced, continuous and only require the transmission of prices and quantities of goods as messages.