Voluntary implementation

We examine Nash implementation when individuals cannot be forced to accept the outcome of a mechanism. Two approaches are studied. The first approach is static where a state-contingent participation constraint defines an impl icit mapping from rejected outcomes into outcomes that are individually rat ional. We call this voluntary implementation and show that the constrained Walrasian correspondence is not voluntarily implementable. The second appro ach is dynamic where a mechanism is replayed if the outcome at any stage is vetoed by one of the agents. We call this stationary implementation and sh ow that if players discount the future in any way, then the constrained Wal rasian correspondence is stationarily implementable. Journal of Economic Li terature (C) 2001 Academic Press.